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.
1099 E-File Service
We’ll help you e-file your 1099s with the IRS. In addition:
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:
A few things to remember:
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
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.
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.
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.
You are not required to file Form 1099-MISC with your state if your business is in:
For all other states, check with your state agency for filing requirements.We do not file 1099s with the states for you.
|Provide your info|
|Federal TIN||A federal Tax Identification Number (TIN) is used by the IRS to track tax liabilities and payments.
|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:
|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:
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?
|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.
|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?
I need to update my forms. Can I still make changes?
How do I file a manual amendment?
What are Safe Harbor guidelines?
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:
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.