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Troubleshoot missing contractors or wrong amounts on 1099s

SOLVED•by QuickBooks•783•Updated December 04, 2023

Learn what to do if you need help adding a contractor or changing an amount when you create your 1099s in QuickBooks Online or QuickBooks Desktop.

If one of the contractors you set up in QuickBooks is missing or not showing correctly when you create your 1099s, we can help. Follow these steps and reports to get everything back on track.

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Step 1: Make sure your contractor is active and set up for 1099 tracking

If a 1099 contractor is missing from the list when you start to create your 1099s, it could be because they're not active or marked as eligible for a 1099. Here's where to check on that and what 1099 reports you can create.

If you're in the middle of creating 1099s, on the Review Your Contractor’s Info window, select the Add from Vendor list button and select the appropriate vendor.

If you're not creating 1099s, create this 1099 report to see which vendors are set to track 1099s. Then, you can change their status:

  1. Select Reports (Take me there).
  2. Search for Vendor Contact List and open the report.
  3. Select Customize.
  4. In the Rows/Columns section, select Change columns.
  5. Select the Track 1099 checkbox.
  6. In the Filters section, select Deleted and change the ▼ dropdown to All.
  7. Select Run Report.
  8. Select Sort and under Sort by choose Track 1099, to sort your contractors.
  9. If you see a missing Vendor, you can change their status, or continue to the next step.
    1. Select their name.
    2. Select Make Active.
  10. If they have No under Track 1099.
    1. Select their name.
    2. Select Vendor Details.
    3. Select Edit ✎.
    4. Mark the Track payments for 1099 checkbox then select Save.

If you already know what vendor to update, change their 1099 status:

  1. Go to Expenses, and select Vendors (Take me there).
  2. Select the contractor you want to convert, then select Edit ✎.
  3. Mark the Track payments for 1099 checkbox then select Save.
    checkbox for track payments for 1099

If they are missing from the Vendor list, they may be inactive.

  1. Above the Action column, select Settings ⚙.
  2. Select the Include inactive checkbox. 
  3. Next to missing vendor, select Make active.
    From the inactive window, select Mark as active.

All vendors added in QuickBooks Contractor Payments are automatically eligible for 1099s. If a contractor is missing, they might be inactive.

  1. Go to Contractors and select Contractors (Take me there).
  2. From the Active ▼ dropdown, select Inactive.
  3. Find and select the missing contractor.
  4. From the Inactive ▼ dropdown, select Mark as active.
    From the inactive window, select Mark as active.
  1. Go to Reports, then select Vendors & Payables.
  2. Select 1099 Summary.
  3. In the 1099 options dropdown menu, select All vendors.
  4. If you see the missing Vendor, make them a 1099 Vendor.
    1. Go to Vendors menu, select Vendor Center.
    2. Double-click the vendor's name.
    3. Select the Tax Settings tab.
    4. Select Vendor eligible for 1099 box to place a check mark.
    5. In the Vendor Tax ID field, enter the vendor’s tax ID.
    6. If there is a checkmark next to Vendor is Inactive, remove it.
    7. Select OK.
  5. Once completed, repeat step 1 and 2. Then in the 1099 options drop-down menu, select 1099 Vendors.

Step 2: Make sure your payments to this contractor meet the threshold

Only those contractors you paid above the annual $600 cash threshold get a 1099. You can see which contractors didn’t meet the threshold with these steps and 1099 reports.
Note: Credit card payments are not included. These payments will be reported by the financial institution and should not be included in the company's 1099 values. For more information on excluded payments see What payments are excluded from a 1099-NEC and 1099-MISC?.

  1. Follow the steps for your product to get started.
    • Contractor payments with QuickBooks Online: Go to Payroll, and select Contractors (Take me there) or Expenses, and select Vendors (Take me there).
    • QuickBooks Contractor Payments only: Go to Taxes, then 1099 filings.
  2. Select Prepare 1099s and select Continue until you get to the window called “Check that the payments add up.”
  3. Select the arrow next to the filter icon at the top of the table and change the type of contractors to 1099 Contractors below threshold.
  1. Go to Reports, then select Vendors & Payables.
  2. Select 1099 Summary.
  3. In the 1099 Options dropdown menu, select Ignore thresholds.
  4. If you see the Vendor, they have not met the threshold.
  5. If this is a 1099 Vendor using 1099 Accounts, you need to enter more transactions or change the thresholds.
    • Go to Edit, select Preferences.
    • On the Preferences window, select Tax:1099 from the left pane, then select Company Preferences tab.
    • Select the link click here next to If you want to map your accounts to boxes on form 1099-MISC.
    • QuickBooks 1099 wizard page will come up. In the Map Accounts step, select Show IRS 1099-MISC filing thresholds link.
    • In the 1099-MISC IRS Thresholds window, double-click the Thresholds column for the appropriate 1099 Box.
      NOTE: The screen will display; Your settings do not match the current IRS thresholds message in red. Select Reset to IRS Thresholds if you want to follow the IRS-mandated threshold and add more transactions instead.
    • Select Save & Close.

Step 3: Make sure you're paying contractors from the right expense account

When creating 1099s, QuickBooks uses the expense accounts you mapped to report 1099 transactions. If your amounts are off, you may want to review the contractor payment transactions and accounts associated with them.

  1. Select Reports (Take me there).
  2. Enter Transaction List in the search bar, then select Transaction List by Vendor.
  3. Select Customize.
  4. Set the Report period to Last Year (or Last Calendar Year).
  5. Go to the Rows/Columns section. Select the Change columns link then put a checkmark on the Split box.
  6. Go to the Filter section.
  7. Check the Vendor box, and from the dropdown, choose 1099 vendors who are in question.
  8. Select Run report.
  9. Look under the Splits column for what accounts the vendor's transactions were tied to. If you see the word "SPLIT," select the transaction to see details on what accounts were affected. If this is a Bill Payment, access the Bill to see what expense accounts were affected.
  1. Go to Contractors, then select Contractors (Take me there).
  2. Select View all contractor payments.
  3. Open each payment to view the Category. This account should be mapped when creating 1099s.
  1. Go to Reports, then select Vendors & Payables.
  2. Select 1099 Summary.
  3. In the 1099 options dropdown menu, select All allowed accounts.
  4. If you find the missing vendor, find the Account and make it a 1099 Account.
    • Double-click the amount in the Total column for your Vendor.
    • In the 1099 Detail report make note of the Accounts in the Account column.
  5. To show these transactions on 1099 reports and forms
    • Go to Edit , select Preferences
    • In the Preferences window, select Tax:1099 from the left pane, then select Company Preferences tab.
    • Select the link next to If you want to map your accounts to boxes on form 1099-NEC or 1099-MISC.
    • QuickBooks 1099 wizard page will come up. You'll be directed to Map Accounts. This window displays all accounts used for payments to 1099 vendors. From the Apply payments to this 1099 box drop-down, choose one of the 1099 boxes.
  6. Once done, close the 1099 Detail report.
  7. Select the second 1099 Options drop-down, then select Only 1099 accounts.

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