How to Create, Edit, and File 1099s in QuickBooks Desktop? Complete Steps

As a business owner, managing tax compliance is a crucial responsibility, and part of that includes issuing 1099 forms to independent contractors and vendors. QuickBooks Desktop simplifies the process of creating, editing, and filing 1099s. This guide will walk you through every step, from setup to file 1099s in QuickBooks Desktop.

Step 1: Setting Up 1099s in QuickBooks Desktop

Before you create 1099s, ensure that QuickBooks Desktop is set up correctly for tracking payments to vendors.

Verify 1099 Vendor Eligibility

Open QuickBooks Desktop and go to Edit > Preferences.
Select Tax: 1099 from the left pane.
Click Company Preferences and ensure the option to track 1099s is enabled.
Click OK to save your settings.

Configure Vendors for 1099s

Go to Vendors > Vendor Center.
Select the vendor who needs a 1099.
Click Edit Vendor.
Navigate to the Tax Settings tab.
Check the box for Vendor eligible for 1099.
Enter the vendor’s Tax ID (TIN or SSN).
Click OK to save the changes.

Assign Expense Accounts for 1099 Reporting

Navigate to Edit > Preferences > Tax: 1099.
In the Company Preferences tab, click Map Accounts.
Assign appropriate expense accounts (e.g., contract labor, rent) to corresponding 1099 categories.
Click Save & Close.

Also Read: How to Fix Missing Transactions in QuickBooks Desktop?

Step 2: Creating 1099 Forms in QuickBooks Desktop

Once vendors and expense accounts are configured, follow these steps to generate 1099s.

Go to Vendors > Print/E-file 1099s > 1099 Wizard.
Select Get Started.
Confirm vendor information and click Continue.
Ensure correct payments are being tracked.
Review and verify amounts.
Click Continue and Finish Preparing 1099s.

Step 3: Editing 1099s Before Filing

If any information needs to be updated before filing, you can edit the forms within QuickBooks.

Edit Vendor Information

Open Vendor Center.
Select the vendor and click Edit Vendor.
Modify necessary details (name, TIN, address, etc.).
Click OK to save changes.

Adjust 1099 Amounts

Navigate to Vendors > 1099 Wizard.
Review payment transactions.
Modify any misclassified transactions in the Chart of Accounts.
Run the wizard again to reflect the updated totals.

Step 4: File 1099s in QuickBooks Desktop

You can either e-file directly through QuickBooks or print paper copies for mailing.

E-filing 1099s

Go to Vendors > Print/E-file 1099s.
Select 1099 Wizard and click E-file 1099s.
Sign into the Intuit 1099 E-File Service.
Follow the on-screen prompts to submit your forms electronically.

Printing and Mailing 1099s

Load pre-printed 1099 forms into your printer.
Go to Vendors > Print 1099s.
Select Print 1099s and choose the appropriate form type (1099-NEC or 1099-MISC).
Print and distribute copies to vendors and the IRS.

Also Read: Why QuickBooks Isn’t Calculating Your Payroll Taxes?

Conclusion

Creating, editing, and filing 1099s in QuickBooks Desktop is a straightforward process when set up correctly. By following this guide, you ensure accurate reporting and compliance with IRS regulations. Regularly review vendor payments and tax settings to streamline the process for future filings.

Frequently Asked Questions

How do I determine if a vendor needs a 1099?

QuickBooks Desktop identifies vendors who qualify for a 1099-NEC or 1099-MISC based on their payment method, total earnings, and tax classification. To check, go to Vendors > Vendor Center > Select Vendor > Tax Settings and ensure Track payments for 1099 is enabled.

What types of payments require a 1099 form?

Generally, payments of $600 or more for services performed by non-employees (independent contractors) using checks, direct deposit, or cash qualify. Payments made via credit cards or third-party networks (e.g., PayPal, Venmo) are reported by the payment processor via Form 1099-K, not by you.

Can I generate 1099s for multiple vendors at once?

Yes. In QuickBooks Desktop, go to Vendors > Print/E-file 1099s and follow the wizard to select and prepare 1099s for all eligible vendors at once.

How do I correct an amount on a 1099 before filing?

If you haven’t filed yet, go to Vendors > Print/E-file 1099s > Get Started, select the affected vendor, and adjust the reported amount. Ensure payments are assigned to the correct 1099 category in Chart of Accounts.

Can I change a vendor’s 1099 classification after issuing a 1099?

Yes, but if the form has already been filed, you may need to issue a corrected 1099. Update the vendor’s tax classification under Vendor Center > Edit Vendor > Tax Settings, then regenerate the 1099.

Can I e-file 1099s directly from QuickBooks Desktop?

Yes, QuickBooks Desktop offers an e-file service via Intuit 1099 E-File Service. You can access it through Vendors > Print/E-file 1099s > E-file.

What’s the deadline to file 1099s?

1099-NEC: Must be e-filed or mailed by January 31 to the IRS and recipients.
1099-MISC: Must be sent to recipients by January 31, but IRS filing is due by March 31 (if e-filing) or February 28 (if paper filing).

Do I need to submit 1099s to the state?

Some states require 1099 reporting in addition to the IRS. Check your state’s tax agency website or use QuickBooks’ state filing options during e-filing.

What type of paper do I need to print 1099s?

You need pre-printed 1099 forms from the IRS or an office supply store. QuickBooks Desktop does not print Copy A (IRS copy) on plain paper but prints Copy B (recipient’s copy) on plain or pre-printed paper.

How do I reprint a lost 1099 for a vendor?

Go to Vendors > Print/E-file 1099s > Get Started, select the correct year, choose the vendor, and click Print 1099s.

My 1099s are misaligned when printing—how do I fix this?

Use the Alignment Wizard in QuickBooks Desktop:
Go to File > Printer Setup > Form Name: 1099s
Adjust the alignment settings and print a sample