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Marking payments for exclusion from Form 1099-MISC

Beginning with the 2011 tax year, the IRS requires you to exclude from Form 1099-MISC any payments you made by credit card, debit card, gift card, or third-party payment network such as PayPal. (These payments are being reported by the card issuers and third-party payment networks on Form 1099-K.)

When you use check payments (in either Pay Bills or Write Checks) to record a vendor payment made with a credit card, debit card, or gift card, or using a third-party payment network such as PayPal, you should note the payment method in the check number field. QuickBooks recognizes, and automatically excludes from Form 1099-MISC, any check payment containing one of the following notations in the check number field (limited to 8 characters):

  • Debit
  • Debitcar
  • DBT
  • DBT card
  • DCard
  • Debit cd
  • Visa
  • Masterc
  • MC
  • MCard
  • Chase
  • Discover
  • Diners
  • PayPal

QuickBooks automatically excludes from Form 1099-MISC any bill payment made using the credit card payment method.

11/18/2017 7:11:01 PM
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