How do I adjust a 1099 misc income figure

Good evening, @Mimi46. I'm here to guide you on how to make adjustments on 1099 in QuickBooks Desktop.

Before making any changes, I recommend reaching out to an accountant on this matter. We want your QuickBooks to match what's going to the IRS. An accountant can go through your books and see if there are any missing transactions, as well as having tools to fix any errors. 

You can follow these steps to prepare your 1099s:

1. Go to Vendors, then Print/E-file 1099s.
2. Choose 1099 Wizard then select Get Started.
   • Note: If you’re filing for New Jersey or Wisconsin, you'll see a pop-up message. 1099 forms filed in these states have special rules for boxes 16 and 17.
3. Pick the vendors that need to form 1099-MISC and press Continue.
4. Verify the vendor information is correct. You can edit any incorrect information by double-clicking on the section that needs updating.
5. Under the drop-down in the Apply payments to this 1099 box section, locate the account you want to link the payment to and hit Continue.
   • Note: if you see a message in red stating your settings do not match the current IRS thresholds, select Show IRS 1099-MISC filing thresholds and choose Reset to IRS Thresholds.
6. Review your payment information.
7. Select View Included Payments and View Excluded Payments, then Continue.
8. Review the vendors and amounts you're going to report.
9. Choose whether to print 1099s or E-file.

Here's an article that provides more information on how to prepare and file 1099s with QuickBooks Desktop.

Let me know how this goes! If you have any more questions or concerns, please reach back out to me in the comments. Have a wonderful day!

There isn't a way to adjust the numbers on the form.  Instead, the only way to effect change is to change your underlying data, your payments to the vendor, so that they are reported correctly (either included or omitted as is appropriate.)

I did a mid-year computer converstion to QB.  How do I adjust the vendor information to include payments made in my previous accounting system to obtain the correct 1099 information?

Thanks for following this thread, Patti0808.

Welcome to the QuickBooks family. We’ll have to manually enter the transactions from your previous accounting system. Alternatively, use the IIF file to get the banking data into QuickBooks.

Let me guide you through the steps to add these entries. The process differs on the transaction type. For this one, I’m adding the instructions on how to write a check.

Here’s how:

1. Press the Banking menu at the top bar to select Write Checks.
2. From there, fill in the fields with the correct information.
3. Make sure to enter the name of your 1099 vendor in the PAY TO THE ORDER OF box.
4. Click Save & Close or Save & New to continue adding another check.

I've included a screenshot of how the entry should look like.

For bills, bill payments, and bank data, follow the recommended instructions in these articles.

• Enter bills
• Pay bills
• Export, import, and edit IIF files

Once done, let’s review your vendor’s information and make sure the Vendor eligible for 1099 is selected. This is to ensure you can seamlessly process the form.

Here’s how:

1. Go to the Vendors menu to choose the Vendor Center.
2. Tap the Vendors tab to view the complete list of suppliers.
3. From there, double-click the name to view the profile.
4. Hit the Tax Settings menu on the left panel and review the settings.
5. Tick the box for Vendor eligible for 1099 if it’s not checked.
6. Click OK to close the window.

For additional resources, the following articles provide an overview of how to add vendors for 1099. Also, you’ll see the complete instructions to file the tax form in QuickBooks.

• How to set up contractors and track them for 1099s in QuickBooks
• Create and file 1099s

Feel free to visit the Community again if you have any other QuickBooks concerns. I’m more than happy to answer them for you. Enjoy your day.

I've also done a mid-year conversion to QB (7/1/2020 - beginning of our new fiscal year), but was hoping to use QB to prepare my 1099's by simply overriding the 1099 total on each vendor. I'm worried that if I now go back and manually enter vendor transactions from my previous fiscal year, it will affect my beginning GL balances (cash, retained earnings). I think it may be cleanest if I just use a thrid party this year to prepare 1099s where I report the 1099 totals from both of my accounting systems without recreating prior fiscal year entries.  

While this method will fix the amounts on the forms 1099, it will totally screw up your balance sheet forever.  That's because making "dummy" entries to account for past-period expenses -- even if entered in prior years -- will still reflect on your current balance sheet.  Lovely.  I have found no way around this other than manually producing the forms 1099.

I have a similar problem. Is it possible to submit the accurate 1099’s by QB e-file, and then produce the remaining manually and submit them separately? Does the IRS care if the 1099s come in two submissions?

We appreciate you joining the thread, BBMac. I'll share IRS guidelines for filing 1099s to assist you in submitting your forms effectively.

You can definitely e-file your accurate 1099s using QuickBooks. However, if you manually create and submit the rest separately, the IRS may view them as corrections to your e-filed forms.

To help us further understand the IRS regulations for filing 1099s, please see these resources:

• What’s new and changed with 1099s
• IRS and Treasury issue final regulations on e-file for businesses

Whenever you're ready, create and file your 1099s with QuickBooks Desktop (QBDT).

Also, I'm including this article to help answer the most commonly asked questions about 1099s in QuickBooks: 1099 concerns.

Please let us know in the comments if you have other 1099 concerns in QuickBooks. We'll get back to you right away to assist you.

This is a master class in how to answer any question other than the one that was asked.

This worked in 2023:

Make a GL journal entry

On the first line use any bank account, enter 0.00 in the debit column (I've been warned not to skip this step although it appears to do nothing)

on the 2nd line enter the gl account # (expense) that your vendor is usually applied to, put the amount of the adjustment in the debit column, in the name column use the vendor you are adjusting

on the 3rd line - do the reverse of the 2nd line (same gl #) and leave the name blank

The end result should be that the 1099 for the vendor named on line 2 is increased by the amount debited on line 2 but there is no change in the gl balance

It is not necessary to enter a different gl adjustment journal for each vendor.  They can be added below line 3 using the same sequence without the need to repeat line 1.