How to Create and file 1099s with QuickBooks Desktop?

How to Create and file 1099s with QuickBooks Desktop?

QuickBooks Desktop users have been encountering difficultiesin creating and filing 1099 with QB Desktop. This is a great feature of
QuickBooks which lets users file taxes using QuickBooks. Pertinently, 1099 are
necessarily to be file during paying in cash and direct deposits. There are two
types of 1099 forms - 1099-NEC and 1099-MISC.  This discussion shall provide a thorough aftercompleting the filing process, the same can be forwarded via mail to
contractors. To know about how to createand file 1099s with QuickBooks desktop, read this article till the end.

Importance of filing 1099s in QuickBooks

•       When paying contractors in the form of cash,direct deposit, and checks, filing of 1099s is crucial.

•       The 1099 form must also be filed when recruitingsuppliers or independent contractors.

•       Filing 1099s is crucial if the federal incometax has been withheld under the withholding regulations.

Procedure to create and file 1099s with QuickBooks Desktop

Perform the following steps to accomplish the filing processof 1099 form in QB.

Step 1: Entering report contents and time

•       To begin with, the person filing the form shouldknow why he is filing Form 1099. Whether “employerpaying contractors or vendors” or whether “already deducted federal income tax”. 

•       Additionally, one should have a prior knowledgeof the “filing due date of the 1099 form”,which is January 31. Pertinently, the tax form must be submitted electronically
by January 28.

Step 2: Set the 1099 account

•       It is feasible to “classify payments made to contractors as nonemployee compensation”.

•       Also, classify contractors according to the paymenttype if they have chosen multiple cash payment methods. Notably, submission of
both 1099s kinds is a must for such consumers.

Step 3: Updating QuickBooks Desktop

•       To begin “runQuickBooks Desktop”.

•       Now, proceed with the selection of “UpdateQuickBooks Desktop” from the “Helpmenu”.

•       Select “UpdateNow” and also mark the checkbox besides “Reset Update”.

•       Tap on “Getupdates” button to begin the update. 

•       After the download process has been successfullycompleted, restart QuickBooks.

•       When you restart QuickBooks, the installationprocedure will start automatically.

Step 4: Creating 1099s with QuickBooks Desktop 

•       Go for the Vendors menu in QuickBooks.

•       After that, choose 1099s forms.

•       The next step is to create a backup of yourcompany files.

•       Select the Get started option. The 1099-NEC and1099-MISC forms can both be generated here.

•       Now, contact every supplier or contractor forwhom you need to prepare 1099s.

•       After that, click Continue.

•       Next, verify that all of the data entered isaccurate.

•       Double-click on a certain vendor and then byselecting Continue, you can edit the entered data.

•       Then click or tap the drop-down menu next toApply payment to this 1099.

•       Select the account that is linked to a givenpayment. Grey boxes signify that the account has already been matched to
another 1099 form.

•       Once you've mapped the vendor payment accounts,click Continue.

•       You can click on the View Excluded Payments orView Included Payments choices to get detailed information about the payments
that are included in or excluded from the 1099 form.

•       Exclude any electronic transactions from your1099 form.

•       Verify the accuracy of the amount stated next toeach vendor name.

•       Next, click Continue.

Step 5: Transferring data into 1099

        Initially, hit on 1099 E-File Service toproceed. This option will be accessible soon after you've generated your 1099
tax forms.
        Now, you are supposed to register for a Tax1099Account or login if you have already created one.
        Now, import/transfer the tax data created inQuickBooks Desktop to 1099s. For this, adhere to the on-screen instructions.

Step 6: Filing 1099 tax forms with QuickBooks Desktop

        By selecting a vendor's name or the edit button,you can update any of the information.
        You are supposed to pick the Update option.
        To file state 1099s, you need to provide thenecessary information in the relevant state boxes.
        Then, choose each vendor and contractor whosetaxes you want to e-file.
        Hit on Next.
        Choose the delivery mechanism for each vendor'scopy of 1099. You can choose between the USPS mail, the Email Receiver, or
downloading the PDF and forward that manually.
        If you want to file 1099s with your state, hiton Next. Choose your state as well. If not, tap on Calculate Tax1099.com Fee.
        The Payment Page will now appear on the screen.
        Herein, you are required to enter your correctpayment information and then hit on Pay & Submit.
        If you want to generate and submit the1099-MISC, repeat the steps.

Step 7: Verify status of 2099s filing

        To begin with, “access your Tax1099 account” and “log in”.
        Afterward, click on the “plus sign”. It is located in the page's upper right corner.
        Thereafter, you need to “check the Status check box”
        The reference number has nine digits.
        Hit on “CheckStatus”.

Thepresent discussion unfolded the methodto create and file 1099s with QuickBooks Desktop. For resolution of anyother QuickBooks issues, feel free to call our experts at 1 800-761-1787.