Learn how to prepare and file your Federal 1099s with QuickBooks Online.
QuickBooks Online has a time saving feature to help you prepare your 1099s from the info you already have in your accounts. 1099s are the tax forms you need to file with the IRS when you pay contractors in cash. See What is a 1099 and do I need to file one? for more general info.
Follow the steps below to create and file your 1099s (1099-MISC and 1099-NEC) in QuickBooks Online. When you file with us, we also take care of mailing a printed 1099 copy to your contractors so they can use it for their tax filing.
|Steps for other QuickBooks products This article covers QuickBooks Online. If you have QuickBooks Desktop, Intuit Online payroll, or don’t have a payroll service with us, we can still help you create and file your 1099s. See What is a 1099 and do I need to file one? for links and more information.|
Step 1: See what and when you need to report
Do you need to file a 1099?
The IRS requires you to file a Form 1099-NEC for any non-employee that you:
- Paid $600 or more in cash during the previous year. Note: The IRS doesn't allow electronic payments to be reported on Form 1099-MISC or 1099-NEC. You do not need to report payments you made to them electronically, such as by credit card, debit card, gift card, or PayPal payments. QuickBooks Online automatically excludes these for you. The payment companies will report those payments so you don't have to.
- Withheld any federal income tax from under the backup withholding rules.
If you previously reported any information on Box 7, which is the total amount of non-employee compensation, this information is now reported on the 1099-NEC in Box 1. Don’t worry, we’ll help you complete both forms and get things where they need to go.
When are 1099s due?
1099s are due to the IRS and your contractors by February 1, 2021. However, we recommend you e-file before January 28, 2021 at 5:00 PM PT. This is to be sure your 1099s can be postmarked to your contractors by February 1, 2021. You can e-file 1099s through February 1, 2020 to be on time with the IRS.
Need to file in your state?
The 1099 E-file service is only for federal 1099-MISC and 1099-NEC filings. For more information about what states require a 1099 filing or support combined filings see Does my state need Form 1099-MISC to be filed? Contact your state for more information and learn how to file.
Step 2: Set up your 1099 accounts
If you need to file both a 1099-NEC and a 1099-MISC, you may need to adjust your account and contractor payments. This is determined by which types of boxes you select for types of payments you made to non-employees. Most businesses only select “non-employee compensation” for contractor payments,. In this case, no adjustments are needed. However, if you do need to select other types of payments to report, you’ll need to do some accounting work to prepare your books. Follow this article to update your company file.
Step 3: Create your 1099s in QuickBooks Online
Here’s how to get your 1099s ready to e-file or print. These steps walk you organizing your contractors and payments so your filings are correct.
Note: If you want to see what you’ve paid your contractors, you can run 1099 reports.
- Go to the Payroll menu, then select Contractors. Or select Expenses and then Vendors.
- Select Prepare 1099s and then Let’s get started.
- Make sure your company name, address, and tax ID matches is correct and matches what is found on tax notices or letters from the IRS.
- Select the boxes that represent the type of payments made to all of your contractors this year, then select Next. Important: There are changes to the 1099 forms and boxes in 2021 for tax year 2020, so choose your boxes carefully. Most businesses will choose “Nonemployee compensation (Box 1 1099-NEC)”, but check with your accountant if you think you might have made other types of payments.
- Verify that all of your contractors show up and their personal info and email addresses are correct.
- If you’re missing a contractor, select Add from Vendor list and select any additional 1099 contractors from your QuickBooks Vendor list. Then select Next.
- Review the payment totals for each box you selected in step 4. The payments will be automatically separated between the 1099-NEC and 1099-MISC forms. Select Next.
- Note: You won't see payments that you made electronically to contractors (such as by credit card, etc.). This is because these are reported for you by the credit card company, bank, etc. If you don’t see all of the payments you expect, you can verify the year and threshold just above the Name column.
- Select E-File for me to e-file your 1099s. Or select I’ll file myself to print and mail the forms yourself.
Step 4: E-file your 1099s
Now that you've prepared and verified that the information is correct on your 1099s, it’s time to e-file.
- After preparing your 1099s, select the E-File for me option.
- Verify your 1099 Forms, then select Continue.
- Review your 1099 Forms and make sure that the information brought over from QuickBooks Online is correct. Select all or select only the 1099 forms you want to submit. Then select Continue.
- Enter your billing info, then select Approve. This information isn't imported from QuickBooks Online. First-time users will be prompted to enter billing and credit card information.
- Review the number of forms and the total amount, then select Continue.
- If prompted, choose the delivery option for your contractors' copies. If you don't see this option, you've already opted-in to provide your contractors online access to their 1099s when you added them to QuickBooks.
- Verify or enter missing email addresses for your contractors so that we can send access to view their 1099 forms online. All contractors with email addresses will receive an invite to access their 1099 forms online. See Invite a contractor to add their own 1099 tax info for more details.
- If an email address is incorrect, you'll need to update the contractor's email address in QuickBooks, and then go back through the 1099 e-file flow. This will ensure that the contractor receives the invite to access their 1099 forms.
- If the email address field is left blank, we'll still e-deliver the 1099 copy to the email address previously saved in your QuickBooks Online account.
- Select Continue.
- View and download and Submit 1099 Forms. If you select the View forms button, you'll only get Copy A that we sent to the IRS. Other 1099 copies are available from the Home page.
- Select Continue.
- Submit final forms to submit. Make sure that you have reviewed the 1099 forms before submitting as we do not handle corrected forms.
Note: The paper version of Copy A of Form 1099 is for your records. You shouldn't print or mail this form to the IRS.
Step 5: Check your filing status
After you file your 1099s to the IRS with the steps above, we’ll notify you of your filings’ status through email . You can also check your filing status anytime by in your 1099 E-File account.
Below are the list of statuses and what they mean:
- Not Submitted: You haven't e-filed Form 1099-NEC or 1099-MISC with the IRS. You can continue revising it.
- Submitted: You have e-filed the form to the IRS. Note: If you need to revise it, you may need to file a manual amendment. Use these IRS instructions and form to do so.
- Received by IRS: The IRS has received your form and is either processing it or has already processed and approved it. Customers who have submitted their 1099 E-File forms will receive a confirmation email approximately a week after the IRS accepts and confirms submissions. You may not receive this confirmation until the middle of January or later.
Can I file another set of 1099s?
Yes. Open QuickBooks Online, then go to the Payroll menu, then select Contractors, and then Prepare 1099s. If contractors are not added yet, add them first before going to the 1099 e-file flow.
If you need to file 1099s for a separate company, once you’ve logged into the Intuit 1099 E-File Service you will see the last company you filed for on the Toolbar. Select the dropdown and then "Add another Intuit 1099 E-File Service Subscription”. This will give you a page to begin entering the next company's information.
Note: Each subscription for each company is a separate fee.
How do I submit a correction?
You will need to work directly with the IRS to make a manual amendment to your 1099 forms. Use these IRS instructions to do so. For more information see Correct errors on Forms 1099-MISC. Once corrected you will need to provide the corrected return to the recipient or contractor yourself.
Can I access archived or previously filed forms?
Yes. You can access archived or previously filed 1099 forms that are from January 1 through April 30 at any time by logging into your 1099 E-File Service account.