How to Prepare & E-File Tax Form 1099 for Vendors in QuickBooks?

People who are involved in the independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. If the user has paid at least one vendor or contractor more than $600 in a calendar year, the user would need to e-file 1099 MISC forms to the IRS and also give copies to the contractors so that they will be able to use it to file their own tax returns.

There are a few easy steps in which the user can complete the 1099-MISC filings through QuickBooks Online. The user can start by preparing the 1099s in QuickBooks and then choose to either to file the forms with the 1099 E-File Service or print and mail the forms to the IRS and the contractors.

Before the user starts to e-file 1099, they must know to check the date’s deadlines, verify the contractors’ information, and prepare 1099 in QuickBooks.

How to prepare 1099 in QuickBooks?

Whether the user decides to e-file, or to print and mail 1099s, they must always start by preparing their forms in QuickBooks.

1. Navigate to the option that says ‘Workers‘>> then select Contractors. (Or Expenses > Vendors.)
2. Click on ‘Prepare 1099s’.
3. Click on ‘Let’s get started.’
4. Ensure that the user’s company name and address, and the tax ID are correct.
5. Next, check all of the boxes that represent the type of payments made to all contractors this year. Select the expense account where the user can track the payments and click on Next.
6. Ensure all of your contractors show up and their details are correct and click on Next.
7. Review the payment totals for each box. Excluded payments are typically the ones that are paid by credit card, which are reported to the IRS by the credit card issuer.
8. Click on ‘Finish preparing 1099s.’
9. Click on ‘Go to 1099 E-File Service to e-file 1099.’

Also Read: Re-Sort Master Name List in QuickBooks Desktop

How to E-file 1099 forms?

The best way to do this would be to contact the QuickBooks support team and they will certainly help the user in e-filing the 1099s with the IRS. Along with that, they will also help the user in the following:

1. They will print and mail copies to the contractors of the user via First-Class Mail so the user doesn’t have to.
2. Ensure to e-file by January 27 at 5 pm PT to make sure that the contractor copies are postmarked by the IRS deadline of January 31.
3. The contractors will receive their copy in the mail the following week.
4. (Optional) If the user would like to send additional copies to the contractors, then they can download and email them, or the users can print on plain paper and mail it to them.

Which payments must be included and excluded?

If payment is made to contractors by credit card, debit card, gift card or a third-party network such as PayPal, then the user must exclude those amounts from the 1099 form.

The IRS requires these amounts to be reported by payment settlement companies.

If the user needs to edit a contractor payment, perform the steps below:

1. Checking that all of the correct boxes/categories are selected and matched with the QuickBooks accounts that are used to track payments.
2. Ensuring the list shows the right tax year and type of vendor (they meet the 1099 threshold).
3. Noting any payments that are in the excluded column. These payments are mostly the credit card payments made to the vendor, which will be reported by the credit card company.
4. If the user still needed to add or edit a vendor payment, then go back to the payment in QuickBooks and make the changes there. Once finished, they can come back and finish preparing the 1099s forms.

If the user needs some more help in this, they can directly get in touch with the experts. The experts at QuickBooks customer support number +1-855-365-6O12 are highly reliable and make way for the users to make it simpler for them to execute.