Showing results for 
Search instead for 
Did you mean: 

Troubleshoot common 1099 issues

Learn how to troubleshoot 1099 issues.

If you’re stuck in your 1099 preparations, it’s most likely due to one of these problems. We'll show you how to fix them.

Here's how to troubleshoot any issues you may encounter when 1099 is not showing the correct amount during preparations:

  • The payments must meet or exceed the threshold for the box. In the Prepare 1099s screen, look at the top of the Preview 1099 and 1096 Information section to see the dollar amount in parentheses under the Box number at the top of the column. Check to make sure these amounts exceed the thresholds for the box.
  • Make sure the correct Tax Year is selected in the Preview 1099 and 1096 Information section. When you open the Prepare 1099-MISC Forms screen you will see a drop-down menu for Tax Year under the Company Information box.
  • If this is a bill payment, ensure it is attached to the bill. If it's not, you can fix it by following these steps:
    1. Select the Create ⨁ icon.
    2. Under Vendors, choose Pay Bills.
    3. Select the Filter drop-down.
    4. Choose All for Payee and Location and select Apply.
    5. Check the appropriate bill. (Note: If the payment is outstanding, you'll see the full amount of the payment shown in the Credits column leaving the remainder in the Open Balance column. Adjust the amount in the Payment column as needed; for example, if you only wish to apply the credit, change the Payment amount to 0.)
    6. Select Save or Save and close.

    If you're still not seeing the correct information, double check that the payments were assigned to a vendor and not to an employee.

    If the vendor was paid by credit card - those will be reported on a 1099K form submitted by the payment processor.

Your 1099 can show an amount less than you paid your vendor if you recorded the vendor payments to income or equity accounts because these two types of accounts do not flow to 1099 totals. The payments need to be recorded or edited to expense-type accounts, or you can use an asset or liability account; however, if you want to use an account other than an expense account we'd advise you to consult your accountant.

The accounts also need to be assigned for your 1099-MISC forms. For detailed steps, see Assign accounts to 1099-MISC categories for steps on assigning 1099 accounts.

To track vendor payments correctly in the Prepare 1099s screen, make sure that:

  • You've selected the vendor as a 1099 vendor.
  • You're tracking these payments to the vendor in an account associated with a box from the 1099-MISC form.

See 1099 E-File Service: QuickBooks Online setup, troubleshooting, & FAQs for setup steps.

If you’re not sure what accounts should be assigned, run a Transaction List by Vendor report.

  1. Go to Reports.
  2. Type 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 check mark on the Split box.
  6. Go to the Filter section.
  7. Check the Vendor box and from the drop-down, 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.

If the bottom half of your 1099 form may be misaligned or if you have other issues with 1099 form alignment, see Set up printing alignment for 1099 Tax Forms.

If you need to print 1099 for a vendor who doesn’t meet the threshold, you'll need to prepare it manually by running reports and filling in the form by hand. There's no way to override the system and have QuickBooks Online print a 1099 for a vendor who doesn't meet the threshold.

To access and view the 1099 Detail Report:

  1. Go to Reports.
  2. Type 1099 in the search bar, then select 1099 Transaction Detail Report.
  3. Set the report date range to Last Year (or Last Calendar Year).
  4. Filter to narrow down the data on the report to a certain 1099 vendor or 1099 box.
  5. Select Run report.

Was this helpful?

You must sign in to vote, reply, or post

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up