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Create and file 1099s with QuickBooks Online

by Intuit•798• Updated 1 week ago

QuickBooks Online allows you to prepare and e-file 1099-NEC and 1099-MISC forms using the data already in your account. You can file federal and some state forms for contractors paid by cash, check, or direct deposit. Then, you can choose to email or mail printed copies to recipients. Fees may apply.

Note: Not sure which payroll service you have? Here's how to find your payroll service.

Before you start

  • 1099-NEC Threshold: The IRS requires you to file a Form 1099-NEC for any nonemployee that you paid $600 or more in cash during the previous year or if you withheld any federal income tax under backup withholding rules.
  • Electronic Payment Exclusions: The IRS doesn't allow certain electronic payments to be reported on Form 1099-MISC or 1099-NEC. These include payments made by credit card, debit card, gift card, or PayPal. QuickBooks Online automatically excludes these for you because the payment companies will report those payments.
  • E-file Requirement: If you have 10 or more combined 1099s, W-2s, or other federal forms to file, you must file them electronically. To learn more, see IRS and Treasury issue final regulations on e-file for businesses.

Step 1: Create your 1099s

You can choose between two options when you create your 1099s: let QuickBooksprep for you, or prep with QuickBooks' help.

Here’s how to get your 1099s ready to e-file or print.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Select Prepare 1099s.
  3. Select the option to Let QuickBooks do it, then Get started.

Review your company info

Make sure your company name, email, address, and tax ID is correct and matches what's found on tax notices or letters from the IRS. Select Edit ✎ to make any changes.

Review your forms

  1. Select View results.
  2. Review your 1099s. QuickBooks compiles a list of recipients who may meet the 1099 form criteria.

To prepare for 1099 filings, QuickBooks compiled a list of recipients who may meet the criteria for a 1099 form. Here’s how we made the list.  

First, the IRS requires services, not products, to be reported on 1099s. To find all the services you paid for, we check your chart of accounts. QuickBooks reviews the names of the accounts that might be related to 1099s, contractors, or services.  Then QuickBooks identifies the vendors you paid in the last year out of those accounts. 

Next, QuickBooks automatically excludes items from the list for the following reasons:

  • Payments made via credit card, debit card, or third-party system, such as PayPal or Venmo to vendor. This is because the financial institution reports these payments on a 1099-K, so you don't have to.
  • Payments below the reportable 1099 threshold. Usually, this is less than $600.
  • Payments made to known corporations like Home Depot or Intuit. Corporations don’t need 1099s.
  • Typically, reimbursements don’t need to be included in the total amounts. We excluded those, too - based on the chart of account names. This can vary, so check with your accountant if you are not sure. 
  • Contractors and vendors residing outside the US don’t typically require a 1099 form.

To learn more about 1099 rules, see Instructions for Forms 1099-MISC and 1099-NEC.

After reviewing the list

  1. Select the $ amount next to each contractor to see the breakdown of each payment made to the contractor. You can see which accounts are used, and what boxes map to the 1099-NEC or 1099-MISC forms. You can also view excluded amounts.
  2. Select Update account mapping to 1099 boxes to change the 1099-NEC or 1099-MISC boxes that represent the type of payments made to your contractors this year.
  3. When you are ready, select I’ve reviewed and am ready to file.

Here’s how to get your 1099s ready to e-file or print. These steps walk you through organizing your contractors and payments so your filings are correct.

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Quickly prepare 1099s and make managing your team easier with QuickBooks Payroll.

If you have 10 or more combined 1099s, W-2s, or other federal forms to file, you must file them electronically. To learn more, see IRS and Treasury issue final regulations on e-file for businesses.
  1. Go to Payroll, and select Contractors (Take me there).
  2. Select Prepare 1099s.
  3. Select the option I'll do it myself then Get started.

Review your company info

  1. Make sure your company name, email, address, and tax ID is correct and matches what's found on tax notices or letters from the IRS.
  2. Select Edit ✎ to make any changes.
  3. Select Confirm info and get started.

Select accounts and map boxes

  1. Select Select accounts and choose or confirm the accounts used for your 1099 expenses or payments, then select Add. 
  2. Next to each account added, select the 1099-NEC or 1099-MISC boxes that represent the type of payments made to your contractors this year.
    • Important: 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.
  3. Select Next.

Review contractors and totals

  1. On the Tracked for 1099 tab, place a checkmark next to each contractor who should get a 1099. Make sure ‌the contractors' personal info and email addresses are correct.
  2. Select Edit ✎ to make any changes.
  3. If a contractor is missing, select the Not tracked for 1099 tab.
  4. Select Add to tracked list to add the contractor to the Tracked for 1099 tab then select Back.
  5. Review the Reportable total amount for each contractor selected, then select Next.
    • Note: You won't see certain electronic payments to contractors such as those made by credit card, or PayPal. This is because these are reported for you by the those businesses. If you don’t see all of the payments you expect, from the Reportable payments only â–Ľ dropdown select Non-reportable payments only.
  6. Select Preview to view each 1099 and review the amount in each box.
  7. Select Continue to 1099-MISCs to view your 1099-MISC forms.  Select Next.

Choose filing method

  1. Select Continue to E-File to e-file your 1099s.
  2. Or select I’ll print and mail to print and mail the forms yourself.

Step 2: E-file your 1099s

Now that you've prepared and made sure that the info is correct on your 1099s, it’s time to e-file.

  1. After preparing your 1099s, select the e-file option and verify your 1099s.
  2. Follow the on-screen steps to complete your federal and if available, state 1099 e-file. For more info on state filings, see File your state 1099 forms. You'll also be able to review each contractor's 1099.
  3. If prompted, choose the delivery option for your contractor's copies. Extra fees may apply for 1099 forms to be mailed.
    • If you don't see this option, you've already given your contractors online access to their 1099s when you added them to QuickBooks.
    • If an email address is wrong, you'll need to update it in QuickBooks. Then go back through the 1099 e-file flow. 
  4. If prompted, enter your billing info.

Note: Copy A of Form 1099 is for your records. You shouldn't print or mail this form to the IRS.

Step 3: Check your filing status

After you file your 1099s to the IRS with the steps above, we’ll inform you of your filing status through email. You can also check your filing status anytime in QuickBooks Online.

  1. Go to Taxes, then 1099 filings.
  2. View the status of the e-filing under Filing status.
  3. Select View 1099 to view a PDF copy.
  • 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 forms to do so.
  • Received by IRS: The IRS has received your form and is either processing it or has already processed and approved it. You'll get an email approximately a week after the IRS accepts and confirms submission. You may not receive this confirmation until the middle of January or later.

Frequently asked questions

The IRS requires you to file a Form 1099-NEC for any nonemployee that you:

  • Paid $600 or more in cash during the previous year.
  • Withheld any federal income tax from under the backup withholding rules.

Note: The IRS doesn't let certain electronic payments to be reported on Form 1099-MISC or 1099-NEC. These payments include 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.

1099s are due to the IRS and your contractors by February 2*. However, we recommend you e-file before January 27 at 5:00 PM PT.

This is to make sure your 1099s can be postmarked to your contractors by February 2*. E-file is open until April 30*.

*If the due date falls on a weekend, it's moved to the next business day.

The 1099 E-file service supports federal and some state 1099-MISC and 1099-NEC filings. For more info about what states require a 1099 filing and if QuickBooks Online supports your filing, see File your state 1099 forms.

Yes. If you have already filed 1099s, you can create and file additional 1099s in QuickBooks Online.

If you need to file 1099s for a separate company, log into that company in QuickBooks Online and follow the same steps.

Note: Each subscription for each company is a separate fee.

See Correct or change 1099s in QuickBooks to learn how to fix incorrect 1099s.

Check the 1099 filings tab first:

  1. In QuickBooks Online, go to Taxes, then 1099 filings.
  2. Select View 1099 to view a PDF copy.

If you don’t see the archived or previously filed 1099, contact us to get a copy.

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