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str_dsgn
Level 3

1099 Excluded Payments by Vendor report

Help file
6 Comments
AileneA
QuickBooks Team

1099 Excluded Payments by Vendor report

Thanks for choosing QuickBooks as one of your partners in building your business, str_dsgn.  

 

I'm here to share some insights about how Form 1099-MISC works in the program. 

 

When preparing 1099 forms, IRS requires 1099 filers to exclude any payments you made to a 1099 vendor by credit card, debit card, gift card, or a third-party payment network such as PayPal from Form 1099-MISC. For additional information about this process, please refer to this article: What payments are excluded from a 1099-NEC and 1099-MISC? 

 

However, if you wish to file the 1099 in QuickBooks, you can refer to this article: Create and file 1099s using QuickBooks Online.  

 

If you have any other concerns or follow-up questions, please don't hesitate to visit the Community again. Assistance is just a post away. Stay safe! 

str_dsgn
Level 3

1099 Excluded Payments by Vendor report

I followed the instructions at https://quickbooks.intuit.com/learn-support/en-us/1099-misc-payroll-forms/e-file-through-the-1099-e-... but at step-4 I do not see the boxes that represent the type of payments made to all of your contractors this year

MaryLurleenM
Moderator

1099 Excluded Payments by Vendor report

It seems that you're referring to step 2 of the process, str_dsgn.

 

I'll attach below screenshots of every step in preparing 1099s in QuickBooks Online:

 

Step 1: See what and when you need to report

 

Enter the business name, address, and tax ID as recorded with the IRS then click Next.

STEP 1 1099.png

 

 

Step 2: Set up your 1099 accounts

 

Select Box 7 - Nonemployee Compensation then select the multiple expenses accounts you used in recording payments then click Next. Repeat this step if you have other types of 1099 payments that fall outside of Box 7.

 

STEP 2 1099.png

 

Step 3: Create your 1099s in QuickBooks Online

 

In the next screen, review all of your contractor’s information to make sure you have a tax ID and email address on file. In this screen, you can add any missing information or a new vendor to the list. Once you have verified everything is correct, click Next.

 

STEP 3 1099.png

 

Step 4: E-file your 1099s

 

Only contractors with payments meeting the $600 threshold that were paid via ACH, debit card will be shown in the Box 7 and total columns. Credit card payments and third-party network payments such as PayPal will be shown in excluded column and do not count towards the total column.

 

Click Finish preparing 1099s if you are using QuickBooks Online to file your 1099s. You can print the information sheet from this screen to keep for your record.

 

STEP 4 1099.png

 

Here's an article to learn more about payment categories: Understanding payment categories for the 1099-MISC and 1099-NEC.

 

Let me know how it goes so I can assist you further.

str_dsgn
Level 3

1099 Excluded Payments by Vendor report

All payments made via PayPal but they are not shown in the excluded column.

 

see screen shot attached.

1099nec.jpg

Candice C
QuickBooks Team

1099 Excluded Payments by Vendor report

Hey, @str_dsgn

 

Thanks for reaching back to the Community. I hope your day is going well so far. 

 

After doing some further research, I've discovered a way to help resolve this problem. Don't worry. I can walk you through it. 

 

All you need to do to exclude the PayPal transactions is by taking the reference number out and putting the word "Debit" in the box. This has worked for other customers as well. 

 

If this doesn't work, then I recommend contacting our Customer Support Team. They'll be able to use a screen share to walk you through some additional steps. Here's how: 

 

  1. Go to the Help icon. 
  2. Click the Contact Us button. 
  3. Give a brief description of the problem and hit Let's Talk
  4. Scroll down and choose to Get a callback

 

That's all there is to it. 

 

These steps should do the trick. If you have any trouble along the way, just let me know. I want to make sure that you're able to get back to running your business. Have a great Friday! 

str_dsgn
Level 3

1099 Excluded Payments by Vendor report

"All you need to do to exclude the PayPal transactions is by taking the reference number out and putting the word "Debit" in the box. This has worked for other customers as well. ""

 

This worked for me too. But Intuit still needs to fix this so people do not have to do this workaround and also wasting time to find a solution that is not officially written in the manual.

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