QB Issue Resolution:

check the mappping for block 7 to insure that the expense account you use for the payments is selected.  and unless you use block 3, remove any account selected for that block

Resolution for Issue 'It is not letting me classify 1099 payments on Quickbooks online' available: Yes (Solved).
Source: Intuit Community forum.

It is not letting me classify 1099 payments on Quickbooks online: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for 1099 payments
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Error Recovery for 1099 payments [Canada]
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