Can I change a 1099 amount in Quickbooks? The 1099-NEC tool includes expense amounts (invoices) that were in A/P at the end of the reporting year

Hi portia2,

We're unable to change the reported amounts unless you edit the transactions.

The unpaid bills (A/P) will not be reported in the 1099 form because your contractor has not received the funds yet. Only check payments, expenses, or realized payments (online payment excluded) will be reported in the 1099 form.

When preparing for the 1099-NEC form, you'll see the reported amounts in Stage 4: Review. If the bills are really included, you can check if payments were applied to them or were created separately. You can use 1099 reports to check them. Go to Reports and search for 1099 to see the list of reports for it.

Here are some articles about 1099s:

• What is a 1099 and do I need to file one?
• Create and file 1099s using QuickBooks Online

If you have other questions in mind, you can always go back to this thread.

I paid a 1099 vendor through accounts payable but also paid the vendor additional funds throughout the year on our corporate credit card.

How can I add and edit the total amount of the 1099 to include this sum?

Hello @lsalinger.

Welcome to the Community. The amounts that get recorded on 1099s can be a bit confusing.

The IRS requires that certain contractor payments should not be included on the 1099-MISC and 1099-NEC forms and are instead reported on the 1099-K form.

I’ll give you some information on which payments are excluded from 1099-NEC and 1099-MISC forms.

Payments to 1099 vendors made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments, so you don't have to.

So you will not need to add and/or edit the 1099 to include those credit card payments. Sound good?

Let me know if you have any additional questions about 1099s or anything else. I’m here and happy to help!

How do I change the total amount on the 1099? Although QBO excludes the credit card payment from the total 1099 it doesn't do it with debit card payment, and I need to change the total amount reported on the 1099 before submitting 

How do I change the total amount on the 1099? Although QBO excludes the credit card payment from the total 1099 it doesn't do it with debit card payment, and I need to change the total amount reported on the 1099 before submitting 

Hello there, @Calanit.

You're right that Payments to 1099 vendors made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. It is because the financial institution reports these payments. 

To exclude the debit card payment to report on your 1099 form, you can exclude the PayPal transactions by taking the reference number out and putting the word "Debit" in the box. This workaround has worked for other customers as well. 

You might want to check out these articles to learn which payments should be excluded from the 1099-MISC and 1099-NEC forms: 

• Understand which payments are excluded from a 1099-NEC and 1099-MISC
• Understanding payment categories for the 1099-MISC and 1099-NEC.

Stay in touch with me if you still have questions or concerns with 1099. I'll be happy to answer them for you. Take care and have great rest of the week.

I'm in the same situation but reverse.

One payment was recorded as a debit of AP, and the accounts payable is not in the option of mapping dropdown to include what account should be in the 1099 amount. I recorded this expense in December 2020 since it was the expense should be in 2020 but we haven't paid yet so entered it as AP. Then the amount was paid in Jan 2021 so it must be included in the 1099 amount for 2021. However, QB is not allowing me to include this amount since AP doesn't show up as a mapping option as I mentioned...

Is there any way to override the amount on 1099?

The vendor is a law office and the difference amount is rather large.

Hi there, mikoa!

Welcome, and thank you for posting your concern. You quite have a unique situation, I should say. I’ll shed light on why you can’t map A/P and why you don’t see the payment in the 1099s of 2021.

First, you recorded the transaction as an expense, which is like entering a paid transaction in 2020. You could have entered it as a bill, but please don’t change it now because we don’t want to mess up your reconciliation in 2020.

Second, you used an A/P account. Therefore, it is like transferring money from the Payment account to the A/P account. Then, the money then went to the vendor/contractor's profile as a credit, which shouldn’t. Normally, you'd enter a bill and select an expense account in the Category details section, not an A/P account.

Third, you can't map A/P (debited) by default. It doesn't denote a payment to a contractor.

On the other hand, I won't suggest overriding the amounts in the 1099 form. We don't support this process either. It's best to consult a tax professional first, so they can give you advice on your transactions. Then, you can return to this thread if they have instructions that you find challenging to enter in QuickBooks.

Hope this clears up why you can't include the amount on your 1099s. I believe there's a way to correct this. We'll just have an ask a licensed professional or a tax advisor to avoid penalties and to keep your records accurate.

Let me know if you have other concerns about 1099s. I'll be happy to assist you again. Take care!

Hi JessT,

Thank you for your comment.

As you pointed out I used manual journal entries to record these transactions without using Bills.

I understand that there's no way to override the 1099 amount via QB. I might have to use a separate 1099 E-file service (maybe standalone Intuit 1099 e-file?), or manually prepare 1099 for this year. 

Thank you again for your help.

Good afternoon, @mikoa. 

Thanks for reaching back out to the Community. 

You're welcome! 

Here's some additional information about our one time service when E-filing your 1099s: E-file 1099s your way. 

You can come back here and follow up with us when you're ready if need be. We're always here to lend a helping hand. Have a splendid day!

OMG THIS HELPED SOO MUCH THIS REPSONSE! 

THANK YOU!