1099Misc

Managing 1099-MISC forms in QuickBooks Online

QuickBooks Online helps you track payments to contractors and vendors so you can prepare 1099-MISC forms at tax time. We support the 1099-MISC form, but we do not currently support 1099-S forms.

Setting up 1099 tracking

To ensure QuickBooks tracks the correct payments for your 1099s, you must map your accounts.

1. Go to Settings (the gear icon) and select Expenses.
2. In the Bills and expenses section, select Edit ✎ next to Track payments to 1099 contractors.
3. Turn on the toggle if it isn’t already on, then select Save.
4. Go back to Settings and select 1099 preparation.
5. Select Start or Continue.
6. Choose the Map accounts tab.
7. Review the accounts listed for each box on the 1099 form.
8. If you see an account that should not be included (for example, a parking reimbursement account), uncheck it.
9. Select Save when you are finished.

Handling vendor addresses

QuickBooks uses the address listed on the vendor’s profile to generate 1099s. If your vendor has a P.O. Box for billing but requires their 1099 sent to a physical address (as listed on their W-9), you must update the vendor profile before filing.

Because QuickBooks allows only one address per vendor profile, we recommend the following workflow:

1. Open the specific vendor’s profile.
2. Copy the current billing address (e.g., the P.O. Box) and paste it into the Notes section so you do not lose it.
3. Update the vendor’s main address field to match the physical address listed on their W-9.
4. Generate and file your 1099 forms.
5. Once the forms are filed, you can change the address back to the billing P.O. Box if necessary.

Printing and e-filing forms

You can print 1099-MISC forms directly from QuickBooks Online if you have the correct pre-printed forms. Alternatively, you can choose to e-file them through our service.

• To Print: Ensure you have blank 1099-MISC forms compatible with laser or inkjet printers. Use the Print 1099s option within the 1099 preparation workflow.
• To E-file: Follow the prompts in the 1099 wizard to submit your forms electronically.

If you are using QuickBooks Self-Employed (QBSE), the functionality to file 1099s is not built directly into the program. You can search the Apps menu for an add-on service or ask your CPA to process them for you.

Correcting filed forms

If you have already transmitted a 1099-MISC to the IRS, you cannot undo the submission through QuickBooks. To correct a filed form:

1. Obtain the correct amended form from the IRS.
2. Make the necessary corrections on the paper form.
3. Follow the IRS instructions for submitting amended forms.

If you need assistance verifying the status of a submission or specific details about your account, please contact our support team.

Reporting for LLCs

A common question is whether to issue 1099-MISC forms to LLC partners for draws.

Generally, you do not issue a 1099-MISC for draws to members of an LLC treated as a partnership. Instead, the LLC files Form 1065, and the members receive a Schedule K-1 reporting their share of the profit or loss. Draws are considered advances against earnings and are not typically reported externally on a 1099. Always consult your tax professional to confirm how to report payments based on your specific business structure.