This article describes the process of properly setting up QuickBooks to print 1099 Misc forms. It also lists common issues you may encounter when running the 1099 Wizard and printing forms.
Set up your 1099 accounts and vendors
Before setting up vendors to receive Form 1099-MISC, this LittleSquare article will provide some background on 1099s.
- From the QuickBooks menu, select Preferences.
- In the Customization section, select 1099s.
- Put a checkmark on the 1099-MISC forms are filed box.
- Select the accounts to associate with each 1099 Category that applies to your business for reporting and taxation purposes:
- To associate one account: From the Account column, and select an account from the drop-down list.
- To associate more than one account: From the drop-down list, choose Selected Accounts then click the desired accounts in the Select Accounts window. Click OK when all appropriate accounts have been selected.
- Your business may not need to report on all 1099 categories. Many businesses report amounts only for Box 7: Nonemployee Compensation. For more information on reporting requirements, please consult an accounting professional or the IRS.
- (Optional) To change a threshold amount, enter the new amount in the Threshold column.
- The threshold amount is the minimum amount you must report to the IRS. The amounts QuickBooks displays are correct as of the date your copy of QuickBooks was manufactured. When the IRS changes a threshold amount, you must enter the new amount yourself, as QuickBooks cannot update the amount for you. To obtain the latest threshold information, visit the IRS web site and request a copy of Instructions for Forms 1099, 1098, 5498, and W-2G.
- Because an account can belong to only one 1099 category, the accounts you select should be the same accounts you use to track payments related to your 1099 vendors. For example, if you set up an expense account named "Payments to subcontractors" and you select it to track the 1099 category "Box 7: Nonemployee Compensation," you cannot use this account for any other 1099 category. Typically, accounts associated with the 1099 are expense accounts, but you can also associate other account types with a 1099 category. If you are unsure of which account to use, please consult your accounting professional for assistance.
- From the Lists menu, choose Vendors.
- In the Vendor List window, select a vendor then click Edit (available under the Action menu at the bottom of the Vendor List in QuickBooks 2005) to open the Edit Vendor window.
- Click the Address Info tab.
- Make sure the Address field contains the appropriate two-letter state abbreviation and the correct ZIP code.
- If the vendor is a person, the vendor's legal name should appear in the First Name, M.I., and Last Name fields.
- If you know the company name but not the person's name, leave the Company Name field blank to avoid double names on the 1099-MISC form.
- Go to the Additional Info tab.
- Click the Vendor eligible for 1099 checkbox and in the Tax ID field, enter the vendor's tax identification number.
- Click OK.
- Repeat steps 2 through 6 for each 1099-eligible vendor.
Before producing 1099-MISC forms for 1099-eligible vendors, make sure all taxpayer identification numbers and addresses are correct.
Verify information with 1099 report
- From the Reports menu, choose Vendors & Payables > 1099 Summary. (For older versions of QuickBooks, choose Reports > A/P Reports >1099 Report.)
- If necessary, go to the Dates field and change the date range.
- Examine the report for missing 1099 vendors then select All vendors from the first pop-up menu. Any 1099 vendor not appearing on the report needs to be set up correctly.
- If all missing 1099 vendors uncovered in step 3 have been set up, yet some 1099 vendors are still missing, select Only 1099 vendors from the first pop-up menu and All allowed accounts from the second pop-up menu.
- Double-click any amount in the Uncategorized column of the report to open the 1099 Detail Report.
- Check to see if any accounts need to be set up as 1099 accounts by examining the Account column of the 1099 Detail report. Set up the 1099 accounts, if necessary. If you see any transactions that should have been assigned to a different account, double-click the account to edit it.
- When you are finished with step 5, close the 1099 Detail Report to return to the 1099 Report.
- Select Only 1099accounts from the second pop-up menu. You should now see all expected 1099 vendors to whom you have paid amounts that total or exceed the threshold for the 1099 category.
- If a vendor is still missing, select Ignore thresholds from the third pop-up menu. The vendor may not have met the threshold for the year.
IMPORTANT: The 1099 Report covers actual payments (checks and bill payments) made during the year, regardless of the original date of the bill.
Print 1099 forms
- Verify all 1099 information by viewing the 1099 reports:
- From the Reports menu, choose Vendors & Payables then select 1099 Summary.
- If the figures appear incorrect, double-click the amount in the TOTAL column to view the individual transactions.
- Make sure you have blank 1099-MISC forms designed for printers. These forms are available at office supply stores and from the Intuit Market web site.
- Make sure your printer is turned on and online.
- Load enough blank 1099-MISC forms in your printer as you would load letterhead.NOTE: Do not collate your forms before putting them into the printer. Instead, start by loading all of the Copy 1 forms. After you have printed all of the Copy 1 forms for each vendor, then load and print the Copy 2 forms.
- If you have a continuous-feed printer, you may need to adjust for the additional thickness due to the copies.
- If you have a page-oriented printer, it is simpler to print copies separately rather than all at once.
- From the File menu, choose Print Forms and then select 1099s/1096.
- Follow the 1099 Wizard.
- Click the Get Started button.
- Select your 1099 vendors and click Next. NOTE: You can double click the vendors here to edit their information.
- Map your accounts and edit thresholds if needed then click Next.
- You can choose to view reports to show your included 1099 payments or excluded payments. When done, click Next.
- Confirm your 1099 entries after adjustments, If correct, click Next.
- Click the Print 1099s button.
- Print a test form before printing final forms.
- Select at least one vendor.
- Click the Show Details button if you do not see information to the right of the preview.
- Select Alignment.
- Move the black box to change the alignment of the text on the label. Check the preview in the upper left corner of the window to see the text's new location. You can also nudge the text by entering values for X or Y (or use the Up and Down arrow keys to change the numbers).
- Select all vendors you wish to print 1099s for and click the Print 1099 button.
- Confirm your printer settings then click Print.
Resolve common issues
1099 Wizard shows amounts from wrong calendar year
Scenario: You see totals from previous years data when trying to create 1099 forms before the end of the calendar year.Possible reason: The 1099 wizard is designed to analyze transactions from the previous calendar year based on your systems date. If you try to complete your 1099 forms before the end of the calendar year, you will actually get the totals from the previous tax year that you already filed with the IRS.Quick Tip: To create forms for the current tax year, you need to run the wizard sometime in the following calendar year.
Tax form 1099/1096 is not aligned when printing
Scenario: The Xs for Box 7 and 1099 MISC print roughly 1/4 in. to the left of the box.Quick Tip: This issue will only occur when using online 1096 forms printed directly from IRS.gov. QuickBooks is designed to work with the official preprinted forms provided by the IRS.
Characters in the Print Preview are showing as boxes
Scenario: When printing the 1096/1099 tax form, you may see shapes instead of actual letters.Possible reason: QuickBooks Desktop Mac uses the Courier font when printing these forms and if it is not present on the computer you will see these shapes.Quick Tip: Confirm if the Courier font is installed properly by using the Font Book located in your Applications folder.
- From your Mac Dock, click the Applications icon.
- In the Applications window, click Font Book.
- On the left side of the Font Book window, click All Fonts.
- Scroll through the list or type Courier in the Search box at the top.
- If Courier is grayed out, Control-click or right-click on Courier and choose Enable.
- If given the option, click Resolve Automatically.
- Open QuickBooks and Print.
NOTE: If the issue persists, please consult with Apple or your IT professional to get the missing font installed.
Company address does not print on 1096 forms
Scenario: While trying to print the 1096/1099 tax form, you may see shapes instead of actual letters.Possible reason: More than 2 lines of data are entered in the Address field from the Legal tab or the Legal address is blank.
- From the QuickBooks menu, select Preferences.
- Double-click My Company then click Legal.
- In the Address field, delete the additional lines of data.Note: Enter Phone, Fax, Website and Email Address in the fields provided.
- Click Vendors > 1099 Wizard.
- Follow through the Wizard until you reach Print 1099s/1096.
- Select Print 1096.
- The contact information will print on the forms.