cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Created with Sketch. Join our Small Business Relief Initiative. Support a GoFundMe today.
Intuit
452 helpful votes

E-file through the 1099 E-File Service (QuickBooks Online)

If you hire a contractor (also called self-employed or a vendor) to work for your business, you need to complete a 1099-MISC form if you paid them $600 or more in non-employee compensation during the year. For more information, go to the IRS instructions.

This article is intended to help you through the process, which includes: (1) verifying your contractor details (2) preparing 1099s in QuickBooks and (3) e-filing them using the Intuit 1099 E-File Service and delivering them to your contractors.

Need more help? Check our FAQs

Before you start

Check dates and deadlines so you know what to do and when. We’ll also keep you posted about timelines and tasks in your QuickBooks Online Payroll account and by email.

Make sure your contractors’ info is current before you file. When you start working with a contractor, you’ll get some personal and tax info that helps you track payments throughout the year and be prepared it’s time to file 1099s. This includes their name and mailing address, tax ID (SSN or EIN).

Choose how you want to file your 1099s. You can use our 1099 E-File Service to file your 1099s with the IRS starting at $14.99 for the first 3 forms (for details and discount info, see 1099 E-File Service pricing). We’ll send online and printed copies directly to your contractors at no additional cost.

You can also print and mail the forms to the IRS and to your contractors. If you decide to do this, be sure to order your 1099 Kit early so you’ll be all set to stuff the envelopes and mail them out by the IRS filing and delivery deadlines. Don’t forget to include postage when figuring out the cost of printing and mailing.

Verify your contractors’ details

Make you have the following for each contractor:

  • Full name
  • Mailing address
  • Tax ID (Social Security number SSN or Employer Identification Number EIN)
  • Email address

Prepare your 1099s in QuickBooks

Whether you decide to e-file, or to print and mail 1099s, you always start by preparing your forms in QuickBooks. We’ll guide you every step of the way:

  1. Go to Workers, Contractors. (Or Expenses  and then Vendors.)
  2. Select Prepare 1099s.
  3. Select Let’s get started.
  4. Make sure your company name and address, and your tax ID are correct. If you’re not sure what should show up here, check a tax notice or letter from the IRS. Any changes you make are saved to your company settings.
  5. Select all of the boxes that represent the type of payments made to all of your contractors this year. Then select the expense accounts where you track the payments. Select Next.NOTE: Most businesses choose Box 7, nonemployee compensation. Check the Form 1099-MISC instructions on the IRS website.
  6. Make sure all of your contractors show up and their details are correct. If you’re missing anyone, select Add from Vendor list and select any additional 1099 contractors from your QuickBooks Vendor list. Double-check their email address; you’ll need it when if you decide to give them online access to their 1099s. Select Next.
  7. Review the payment totals for each box. If you don’t see all of the payments you expect, check that the list shows right tax year and type of vendor (they meet the 1099 threshold).  Excluded payments are typically those paid by credit card, which are reported to the IRS by the credit card issuer.
  8. Select Finish preparing 1099s.
  9. Select Go to 1099 E-File Service to e-file your 1099s.

NOTE: 1099 E-File Service opens up in another tab.

E-file with the 1099 E-File Service

Any changes your contractors submit will update their personal tax info in your QuickBooks account. intended to guide you as you fill out and e-file Form 1099-MISC using Intuit's 1099 E-File Service. It contains help on the form fields and answers some other questions that you might have as you go through it:

For more details about Form 1099-MISC, see Form 1099-MISC overview.For additional information about dates and deadlines, see 1099-MISC dates and deadlines

Review your info
Nonemployee Comp (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 other boxes.

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.
Why are some contractors missing from this list? A contractor (vendor) appears on this list if they meet the following criteria in QuickBooks Online:
  • You tagged them in QuickBooks Online as a 1099 vendor or you added them as a contractor.
  • They qualify for the federal 1099-MISC threshold for the relevant boxes, after payments you made by credit card, debit card, or PayPal have been excluded.
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.)

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.

Choose delivery option
Do you want to give contractors online access to their 1099s? What if I choose to share 1099-MISC data with other applications?You have the option of allowing your contractors to get their 1099-MISC data into another Intuit application, such as Intuit Turbo Tax. If you select Yes, then we allow your contractors to import their 1099 data, if they choose to do so.

Will I be charged if I select to share 1099 data with another application?No, there is no charge for this service. It is free to both you and your contractors.

Why should I select the option to allow contractors to import their 1099 data?Selecting this option allows your contractors to securely and easily import their 1099 data. By allowing contractors to automatically import means that they are no longer entering this information by hand, which reduces the possibility of human error. This adds another check in ensuring that the data is accurate, and reduces the possibility of getting flagged and audited by the IRS.

If I give contractors this option, does that mean that I no longer have to give them a 1099 form? You are required by the IRS to send or mail contractors a copy of their 1099 form. Even if you're giving contractors a way to access and import their data, you will still need to give them a copy of their 1099 form.

File and deliver
View or print forms Trouble viewing the forms? See Troubleshoot printing paychecks, pay stubs and forms for more information.

When will the IRS and contractors 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.

Do I need to file with my state? Where do I get more info?

You're 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.

What are Safe Harbor guidelines?QuickBooks 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.

FAQs

How do I print and mail forms?

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

  1. Purchase your 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.
  3. When complete, choose the I'll file myself option.
  4. Follow the instructions to align the forms, print the 1099s and 1096 (summary), and mail them to the IRS.
  5. Mail copies to your contractors by the IRS delivery deadline.

Good to know

  • 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.

How much does it cost to file?

You can use our 1099 E-File Service to file your forms with the IRS and deliver 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 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're 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.

Are credit card payments excluded from the 1099?

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.

Check the excluded column for any payments made electronically or by credit card. These payments will be reported by your bank or payment provider and not included on the 1099. You can select the amount to open the Excluded Payments by Vendor report and see payment details.

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.

Was this helpful?

You must sign in to vote, reply, or post

Need to get in touch?

Contact us