Get familiar with the easy walkways on how to create 1099 and file them in QuickBooks Desktop.
If users are looking for the process to prepare and file 1099s with QuickBooks desktop, then they have landed at the right place. For many QuickBooks users, this might seem a tedious and troublesome task. Considering that, QuickBooks accounting software offers a great feature, which is the QuickBooks 1099 wizard. This eases the process and also clears doubts about how to create 1099 in QuickBooks. QuickBooks 1099 wizard saves a lot of time and also eases the process of preparing, reviewing, and filing all the 1099 MISC forms to the internal revenue service. It can also help the users to prepare form 1096 by mail if required.
Considering the fact that many users are seeking an easy guide on how to create 1099 in QuickBooks desktop and also file them, we have come up with this comprehensive walkthrough. This article will help users to make the best use of QuickBooks wizard. Thus, make sure to read the blog post till the end. Also, make sure that the vendor payments are recorded accurately. Moreover, users can also get in touch with our experts and certified professionals who will help the user in making the best use of 1099 wizard, as well as repairing and filing 1099s with QuickBooks Desktop.
What needs to be reported?
In case users pay the vendor more than $600 in a year, then users would have to fill out a 1099 MISC form.
It should be noted that the IRS does not permit electronic payments to be reported on 1099 MISC forms. We can take an example to understand the situation in a better way in case the user has paid via credit card, debit card, PayPal payments, gift card, etc., then he/she would not require to report those on a 1099 MISC. The reason behind this can be that the QuickBooks desktop software automatically excludes the above-mentioned modes of payment. And the payment companies will report those payments, so the user need not worry.
For whom is the creation and filing of 1099s mandatory?
The creation and filing of 1099s are very important for the following:
- Filing 1099s is indispensable when the user makes payments to contractors in different forms like cash, direct deposit, and checks.
- If the user is an employer and has hired vendors or freelancers, then in that case, also the filing of 1099 is essential.
- Also, under the withholding rules, if you have withheld the federal income tax, then filing 1099s is important.
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Easy Steps on How to Create 1099 in QuickBooks Wizard
In order to open the wizard, the user is supposed to opt vendor option and then click on print/e file 1099s, followed by clicking the 1099 wizard. After that, click the Get Started tab and carry out the steps below:
Step 1: (Choose Vendors) Opting for the vendors needing 1099 MISC forms
In this step, the QuickBooks 1099 wizard will show a list of vendors from which users are supposed to select those vendors that require 1099 MISC forms. After being done with the selections, the user should now tap on the Continue tab.
Step 2: (Verification) The vendor information needs to be verified
Now in this step, a table will appear on the screen, which permits the users to Edit, as well as Verify each of the vendor’s information. The information that the user will verify in this step will further be used in the forms. Now to Edit the values, user will have to double-click the Cells in the table, and along with that, move to the Next step by hitting on the Continue tab.
Step 3: (Mapping) Map the vendor payment account
Now moving to this step, the user will have to tell QuickBooks where the amount paid from each account will appear in the form. In order to map accounts or omit payment from 1099 MISC forms, the user will have to select from the Apply payments to the 1099 box drop-down list. Or user can also select the Report all payments in the box 7 checkbox, only if applicable.
In case a red-colored message box appears on the QuickBooks wizard screen, stating that the settings do not tell me the current IRS threshold, then the user would have to follow the steps mentioned below:
- The user is supposed to click the Hyperlink showing IRS 1099 MISC filing thresholds.
- And then opt for Reset to IRS threshold.
Step 4: (Reviewing) Check the payments for exclusions
As per the rules of IRS, it is supposed to exclude from form 1099, the payments just like a credit card, debit card, PayPal payments or gift card, etc.
If a user has made any kind of payments via debit cards, gift card, or papers, user will have to click View included payment button, also Edit the cheque number field, in order to include the proper notation for ensuring that the QuickBooks can exclude the payments from form 1099 misc. For verifying the payments that have been excluded clicking the View excluded payment button will be helpful.
Step 5: (Confirmation) The 1099 entries should then be confirmed
Now comes the fifth step in the process, user will see a table on the screen that will permit reviewing the summary of vendors, for whom the 1099 MISC forms are created, and also the amount being reported for the provided calendar year. After that, the user can easily Review transaction details by simply double-clicking the Amount.
Step 6: Selecting a filing method
Now, this brings us to the end of this process and final step, where the user will have to select the preferred Filing method. There will be two available choices seen on the screen, from which the user will have to select any particular one. The choices will be printed and E-filed.
By selecting the Print option, users can easily Print 1099 MISC and also 1096 on pre-printed forms and mail them to IRS. However, in order to file electronically, another option of E-filing can be chosen.
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Step 7: (Verification) The status of filing 1099 needs to be verified
The following actions should be followed to check the status of the 1099s’ filing:
- To begin with, access the Tax1099 account and log in.
- Afterward, tap the Plus sign. It is located in the page’s upper right corner.
- Thereafter, check the Status check box
- The reference number has nine digits.
- Hit on Check Status.
Carrying out the above-mentioned process in a proper manner should have provided users with viable answers to user queries on how to create 1099 in QuickBooks. After going through this article, users should be able to create and file 1099 MISC forms in QuickBooks Desktop with much ease, and that too without any technical disruptions. The process of preparing and filing 1099 MISC using the 1099 wizard is an uncomplicated and trouble-free task, but only if carried out properly.
However, in case any of the reasons hindering the process users are facing any sort of issue, users can easily contact our QuickBooks desktop support team via our toll-free number i.e., 1-800-761-1787. We are a hub of certified professionals who work round the clock to provide the best possible assistance.