Quickbooks 1099:
Setup and Guide

Quickbooks 1099 is a feature in Quickbooks that allows you to send 1099-MISC form to individuals (like subcontractors). You use this feature if you're paying an individual who is doing a job for you but is not your employee.

Listed below are the steps that you need from setting up to solving 1099 issues:

  1. Enable 1099 feature.
  1. Setup the vendor to be eligible for 1099.
  1. Run 1099 Reports.
  1. Print 1099.

To enable Quickbooks 1099 feature:

  1. In your Quickbooks, click Edit then Preferences.
  2. In the Preferences window, click Tax: 1099.
  3. Click Company Preferences tab then click Yes next to Do you file 1099-MISC forms?.

Quickbooks 1099 Preference

  1. Select the 1099 Category you report to the IRS then select the Account (Quickbooks Chart of Account) you use to track 1099 payments and set the Threshold (minimum amount) you must report to IRS.

    Note: Most of the time, the 1099 Category you will only be using is the Box 7: Nonemployee Compensation.

Quickbooks 1099 Box 7

  1. Click OK.

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Setup Quickbooks 1099 Vendor:

  1. Go to the vendor you want to setup as 1099. In the Vendor Center double click the vendor you want to setup or if you are creating new vendor, click New Vendor.
  2. Click Additional Info tab.
  3. Place a check mark on Vendor eligible for 1099.
  4. Click OK.

1099 Vendor Eligible

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Run 1099 Reports:

  1. In Quickbooks, go to Reports > Vendors & Payables.
  2. Click either 1099 Summary or 1099 Detail report.
  3. Select the date you want for the report.

Quickbooks 1099 Summary Date

  1. Select the 1099 Options.

First Option:

  • All vendors - this will show ALL your vendors.
  • Only 1099 vendors - this will only show the vendors whom you marked as eligible for 1099.

Second Option:

  • All allowed accounts - this will show ALL accounts.
  • Only 1099 accounts - this will show only the account you specified on the 1099 preference.

Third Option:

  • Use thresholds - this will show those transactions that are more than or equal to the threshold you specified on the 1099 preference.
  • Ignore thresholds - this will show all the transactions regardless of the amount

Quickbooks 1099 Options

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Print 1099:

  1. In Quickbooks, go to File > Print Forms > click 1099s/1096...
  2. Click Print 1099s button.

Print 1099

  1. Select the date range for your 1099 then click OK.

Print 1099 Date

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