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Intuit

Prepare and file 1099s in QuickBooks Online

If you paid at least one vendor or contractor more than $600 this calendar year, you will need to file 1099-MISC forms to the IRS and also give copies to your contractors so they can use it to file their own tax returns.

In a few easy steps, you can complete your 1099-MISC filings through QuickBooks Online. Start by preparing your 1099s in QuickBooks, then choose to either e-file the forms with our 1099 E-File Service or print and mail the forms to the IRS and your contractors.

FAQs when preparing 1099-MISC forms:

How do I E-file or print 1099-MISC forms?

You can choose to e-file with our 1099 E-File Service, or print and mail to the IRS and your 1099 vendors (contractors).

1099 E-File Service

We’ll help you e-file your 1099s with the IRS. In addition:

  • We’ll print and mail copies to your contractors via First-Class Mail so you don’t have to.
  • ​Just be sure to e-file by January 27 at 5pm PT to ensure contractor copies are postmarked by the IRS deadline of January 31.
    Contractors will receive their copy in the mail the following week.
  • (Optional) If you’d like to send additional copies to your contractors, you can download and email them, or you can print on plain paper and mail it to them.

Print and mail to the IRS

If you choose to print and mail your 1099-MISC forms to the IRS and your contractors, do this:

  1. Purchase your 2018 1099 Kit by mid-January so you can print and mail in time for IRS filing and contractor delivery deadlines (postmark January 31).
  2. Prepare your 1099s in QuickBooks.
    1. From the left menu, choose Expenses then Vendors.
    2. Select Prepare 1099s.
    3. Follow the on screen instructions to finish.
  3. After preparing your 1099s, choose the Print and mail option.
  4. Select Print sample on blank paper to print the 1099s and 1096s.
    • Select Yes, looks good! to finalize forms
    • Select No, it doesn't line up to align the forms, then select Next
  5. Mail copies to IRS and your contractors by the IRS delivery deadline.

A few things to remember:

  • Remember to include postage when figuring the cost of e-file and print and mail.
  • Form 1096 (the summary) is only required when you print and mail, not when you e-file.
  • January 31 is the last day to mail the 1099-MISC to the IRS and your contractors.

What boxes or categories should I choose?

Select all of the boxes that represent payments made to your contractors. Most contractor payments are considered nonemployee compensation, so most businesses select Box 7. After you select the box, be sure to select the QuickBooks account where you track the payments.

Box 7, Nonemployee compensation

Nonemployee compensation of $600 or more to an individual, partnership, corporation, or estate. For exceptions and more details, go to IRS instructions for 1099-MISC.

Other boxes

See Form 1099-MISC overview for help with boxes other than Box 7.

How do I add a contractor or vendor?

If any contractors are missing from the list, click Add from Vendor list and select any additional 1099 contractors from your QuickBooks Vendor list. Double-check their details, including their name, address, email and other info.

What payments should I exclude?

If you made any payments to contractors by credit card, debit card, gift card, or a third-party network like PayPal, you must exclude those amounts from your 1099-MISC forms.

Instead, the IRS requires payment settlement companies to report those amounts.

For more information about contractor or vendor payments you should not report, review the IRS instructions for Form 1099-K. Small businesses don't file form 1099-K. It is for payment settlement companies, such as banks, to file.

How do I add or edit payments?

If you’re missing or need to edit a contractor payment, do this:
  • Check that all of the correct boxes/categories are selected and matched with the QuickBooks accounts used to track the payments.
  • Be sure the list shows right tax year and type of vendor (they meet the 1099 threshold).
  • Note any payments in the Excluded column. These are most likely credit card payments made to the vendor, which will be reported by the credit card company instead.
If you still need to add or edit a vendor payment, go back to the payment in QuickBooks and make the changes there. When finished, come back and finish preparing your 1099s.

How much does it cost to file 1099-MISC forms?

You can use our 1099 E-File Service to file your forms with the IRS and deliver them to your contractors, or you can print and mail.

1099 E-File Service: The 1099 E-File Service starts at $14.99, and includes creating and e-filing of up to three 1099-MISC forms to the IRS. After three, the price is $3.99 for each additional form. If you have more than 20 forms, we’ll include them at no additional charge. Prior to January 17, we offer an early-bird discount starting at $12.99 and $2.99 for each additional form up to 20.

Print and mail: For pricing info, go to 2018 1099 Kits. Be sure to purchase your 1099 Kit early so you can meet the IRS filing and delivery deadlines.

Do I need to file 1099-MISC with my state?

You are not required to file Form 1099-MISC with your state if your business is in:

  • Alaska (AK)
  • Florida (FL)
  • Iowa (IA)
  • Illinois (IL)
  • New Hampshire (NH)
  • Nevada (NV)
  • New York (NY)
  • South Dakota (SD)
  • Tennessee (TN)
  • Texas (TX)
  • Washington (WA)
  • Wyoming (WY)

For all other states, check with your state agency for filing requirements.We do not file 1099s with the states for you.

I need help with e-filing.

Here's more information that would help you as you fill out the different sections of the form:
Provide your info
Federal TIN A federal Tax Identification Number (TIN) is used by the IRS to track tax liabilities and payments.
  • If you're an employer, your TIN is your federal Employer Identification Number (EIN).
  • If you're not an employer, your TIN is your Social Security number. For more information or If you need a federal EIN, see What is a federal EIN and a federal TIN?
Filing Name Your company's filing name is the name submitted when you applied for a federal Employer Identification Number (EIN).

What if I'm a sole proprietor? If you're a sole proprietor, your filing name is the owner's name, even if you do business under a different name.

Note: When you make tax payments, your tax forms must use the exact filing name, down to the letter. We need the exact name to fill in forms for you.

Tip: Look on the booklet of tax coupons sent to you by the government for your filing name.

Recipient Type The IRS refers to your independent contractor as the "recipient" of Form 1099-MISC. Ask your contractor to fill out Form W-9. Then:
  • If your contractor selected the Individual/sole proprietor box, select Individual here.
  • If your contractor selected another box for federal tax classification, select Business here.
Recipient's Name
Recipient's Address
The IRS refers to your independent contractor as the "recipient" of Form 1099-MISC.

Ask your contractor to fill out Form W-9 and enter that information here.

You can use Line 2 to enter the name of an individual within a business or to report payments to two individuals.

Missing Contractors If any contractors are missing from the list, select Add from Vendor list and select any additional 1099 contractors from your QuickBooks Vendor list. Double-check their details, including their name, address, email and other info.
Boxes What do I need to know about using Box 7?

Most businesses use this box. It is for nonemployee compensation of $600 or more to this individual, partnership, corporation, or estate. For exceptions and more details, go to IRS instructions for 1099-MISC.

See Form 1099-MISC overview for help in filling out the boxes.

Note: Our service doesn't support boxes 11 or 12 (foreign tax paid), or boxes 15 through 18 (not required by the IRS).

Excluded payments: If you made any payments to contractors by credit card, debit card, gift card, or a third-party network like PayPal, the IRS requires you to exclude those amounts from your 1099-MISC forms. Instead, they require the payment settlement companies to report those amounts.

For more information about the payments that you shouldn't report on 1099-MISC, review the IRS instructions for Form 1099-K. Small businesses don't file form 1099-K. It is for payment settlement companies, such as banks, to file.

Pay for Service
Total amount How is my price calculated?
The service includes three forms for $14.99. After three forms, the price is $3.99 for each additional form. If you have more than 20 forms, we'll include them at no additional charge. (At the beginning of January, we offer an early bird discount starting at $12.99 to cover the first three forms and $2.99 for each additional form up to 20.)How will I see the charges on my credit card statement?
When you select the Approve button on the Pay for Service page, we'll charge your credit card for the forms you're ready to download or print. If you approve more forms later, each group of forms will be a separate charge.
Get your forms
Status Here's what the Status entries mean:
  • Not Submitted: You haven't yet e-filed this Form 1099-MISC with the IRS. You can continue revising it.
  • Submitted: You've e-filed with the IRS. At this point, you can't revise it through our service (if you need to revise it, you'll need to file a manual amendment).
  • Received by IRS: The IRS has received your form and is either processing it or has already processed and approved it. This year, the IRS starts processing forms in early January. We'll send you an email about a week after the IRS accepts your forms.
Contractor Copies

If you e-file, you don’t need to send forms to your contractors. We’ll take care of that for you by mailing a printed copy to your contractors via First-Class Mail. Just be sure to e-file by January 27 at 5pm PT to ensure contractor copies are postmarked by the IRS deadline of January 31. Contractors will receive their copy in the mail the following week.

Note: Mailings to your contractors will include your company information as the return address.

If you’d like to send additional copies to your contractors, you can mail your forms, or download and email them as explained below.

Mail your forms What types of envelopes work best?
If you decide to print and mail forms to contractors (instead of downloading and emailing them), you can use window envelopes: Use 1099 double-window envelopes (9" x 5 5/8"). You can purchase these from any office supply store.How do I print the forms?
  1. To print forms for one contractor at a time, select the individual Download links on this page.
  2. To print forms for a group of contractors you select, select the Print for Contractors button and then the View button.
  3. A PDF viewer window opens with the contractor copies and instructions in it.
    When you click the printer icon in your PDF viewer, it may include a Page Scaling option. If it does, set it to None so the address on printed forms will show through the envelope’s window.
Download and email your forms Here's how you can save time by downloading and emailing forms to contractors instead of printing and mailing them.

Since the 1099 forms are financial documents, you should make sure that your contractor agrees that you can send forms by email.

  1. Select Download on the contractor's row. A new window opens that includes the forms you need to send to that contractor.
  2. Save the file, changing its name from ViewPdfForm to a new name, like the contractor's name (for example, CristinaAndres.pdf). To save the file, you can right-click in the window and choose Save as (or on a Mac, press Command-S).
  3. Email the file to the contractor.
E-file with IRS
View or print forms Can't view or print forms? See Troubleshoot printing paychecks, pay stubs and forms for more information.

When will the tax agencies get my forms?
This year the IRS starts accepting forms in mid-January. We'll send you an email about a week after the IRS accepts your forms.
Note: Since you're using our 1099 E-File Service, you don't need to file Form 1096.

I need to update my forms. Can I still make changes?
Once you submit a form, you can't make changes through our service (you'll need to file a manual amendment).

How do I file a manual amendment?

  1. Order 1099-MISC IRS forms online at IRS Online Ordering for Information Returns and Employer Returns or over the phone at 800-829-3676.
  2. Fill out the 1099-MISC form and be sure to select the Corrected checkbox.
  3. Mail the form to the IRS.
  4. Mail the recipient copy to your contractor as soon as possible so that they can file their taxes.

What are Safe Harbor guidelines?
The 1099 E-File Service does not let you make corrections to a 1099 form after it has been e-filed. You can, however, make corrections in a printed copy and send it by mail to the IRS. For more information about correcting a 1099 form that has already been e-filed, please check the IRS website.

However, you might not need to make any corrections. The guidelines in Safe Harbor for de minimus state that you do not need to make any corrections if:

  • the withholding amount (that is, the difference between the actual amount withheld and the amount filed) is less than $100
  • the difference between the dollar amount reported for tax withheld and the correct amount is no more than $25

In such cases, you're not required to file a corrected return.

Note: If the contractor or recipient of the 1099-MISC form wants the information corrected, you will need to provide the corrected return to the recipient or contractor and file it again.

Need more help? Chat with us.

Chat with a QuickBooks Online 1099 specialist.

Related articles:

E-file through the 1099 E-File Service (QuickBooks Online)
Form 1099-MISC overview
1099-MISC dates and deadlines