Good morning, @SilverBullet. I'm here to provide more information on 1099-MISC in QuickBooks Self-Employed.
When preparing 1099-MISC Forms for your contractors or vendors, you must report the total payments in the correct boxes, then choose which accounts you want to track these payments.
For every payment that fits a particular category defined by the IRS, that is, qualifies for a box on the 1099 Form, you'll want to create a new account. When doing this, I recommend that you choose expense accounts. You can rename or create new expense accounts so they're easily identifiable when writing checks or paying bills to vendors. Here's how to categorize 1099 payments to coordinate with the boxes on the form:
- Prepare your 1099 using this E-file through the 1099 E-File Service.
- On the Categories page, mark the checkbox next to all the 1099 boxes that fit the type of contractor payments you make.
- Example: If you have contractor payments that qualify as rents and non-employee compensation, select Box 1: Rents and Box 7: Non-employee Compensation.
- From the drop-down that appears, choose one or more accounts in which these payments are being tracked.
- Example: If you pay several types of contract workers, such as mechanics and pilots, you may have different expense accounts for the money paid to each type of workers, such as Mechanic Expenses/Compensation and Pilot Compensation. In that case, select the Box 7: Non-employee Compensation category, then the Mechanic Expenses/Compensation and Pilot Compensation expense accounts.
If you have any further questions, I recommend seeking a tax accountant's advice on which boxes to use or consult the IRS website to find instructions.
Here's an article for more information on filing the 1099 Forms in QuickBooks.
Let me know if there's anything else I can help you with. Have a safe weekend!
