With QuickBooks Desktop, you can file IRS forms like 1099s easily. With a few clicks, you can file IRS forms like 1099s. Stick with us until the end to understand each step to create and file 1099s with QuickBooks Desktop. Keep reading!
What are 1099s?
1099s are the tax form you are bound to file with the IRS whenever you make a payment or a transaction with contractors in cash, cheque, or direct deposit.
When You Have to File 1099s?
According to the latest guidelines of IRS, you should file a Form 1099-NEC for any non-employee if:
- You have made a $600 or more transaction in cash, cheque, or direct deposit in the previous fiscal year. You don’t need to report digital payments made through credit cards, debit cards, or PayPal accounts. Also, QuickBooks Desktop excludes digital payments on its own.
- You have withheld any federal income tax under the guidelines in accordance with the backup withholding rules.
Steps to Create 1099s in QuickBooks Desktop
Before starting with the steps to create 1099s in QuickBooks, update your QuickBooks Desktop to the latest version; otherwise, it might lack certain features or tools we will use to create 1099s.
- Open your QuickBooks Desktop application and go to the “Vendors” section.
- Under the Vendors section, choose the 1099 forms and later click on “Print/E-File 1099 Forms.”
- Before moving ahead, create a backup.
- Tap on “Get Started” for the 1099 form you will create. If you are making both 1099-NEC and 1099-MISC, you’ll have to repeat the steps for each state separately.
- From the list, choose the vendors that need a 1099 form and tap on “Continue.”
- You are required to map all the vendor payment accounts. Then head to the drop-down menu in the “Apply Payment to This 1099 Box” section.
- Now, select the account you want to link the payments to. After attaching the accounts, tap on the “Continue” tab.
- Review every payment information to exclude the vendors and amounts you want to report.
- Finally, click “Continue” and choose whether you want to print 1099s or e-file.
As we conclude, we hope that now you’ll be able to create and file form 1099 in QuickBooks desktop. You are simply required to follow the steps mentioned above, which our team of experts suggested.
If you are stuck or face any difficulty, consult our technical team at any point. Or you have an option to connect with QuickBooks desktop support Team through mail or give a missed call at 1-800-761-1787.