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octoberfermen
Level 1

Why does QBO insist on e-filing a 1099-Misc. instead of 1099-NEC for a snow plowing service?

 
3 Comments 3
RCV
QuickBooks Team
QuickBooks Team

Why does QBO insist on e-filing a 1099-Misc. instead of 1099-NEC for a snow plowing service?

Let me help you file your 1099*NRC form, octoberfermen.

 

The IRS requires you to file a Form 1099-NEC for any non-employee that you:

  • Paid $600 or more in cash during the previous year. Note: The IRS doesn't allow electronic payments to be reported on Form 1099-MISC or 1099-NEC. You do not need to report payments you made to them electronically, such as by credit card, debit card, gift card, or PayPal payments. QuickBooks Online automatically excludes these for you. The payment companies will report those payments so you don't have to.
  • Withheld any federal income tax from under the backup withholding rules.

If you previously reported any information on Box 7, which is the total amount of non-employee compensation, this information is now reported on the 1099-NEC in Box 1. Most businesses will choose “Nonemployee compensation (Box 1 1099-NEC)”, but check with your accountant if you think you might have made other types of payments.

 

In your case, we can try signing in to QuickBooks Online (QBO) using a private or incognito window. This mode doesn't use the existing cache data and helps us confirm browser-related issues. Here's how:

  • For Google Chrome browser: Ctrl + Shift + N
  • For Mozilla Firefox browser: Ctrl + Shift + P
  • For Safari browser: Command + Option + P

Then, try creating and filing your 1099-NEC form again. If it works, go back to your regular browser and clear the cache to delete those temporarily stored files and browsing history. Web-based platforms like QBO collect cache files (cookies) to save you time, but this can impact processes and cause them to not work. You can also use other supported, up-to-date browsers to roll out the possibility of a browser-related issue.

 

I've got some resources that you might need for additional information about managing 1099s on your account: 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Feel free to reply to this post and I'll get back to you. You have a good one. 

octoberfermen
Level 1

Why does QBO insist on e-filing a 1099-Misc. instead of 1099-NEC for a snow plowing service?

Our lawn and snow plowing vendor is, I thought, a Non-Employee Contractor according to the new IRS rules.  In past years we have sent them a 1099-Misc.  I tried to set up a 1099-NEC this year, but the two accounts for their services were grayed out when I checked the 1099-NEC box, and none of their payments will load into a 1099-NEC.  If I go into the Vendor listing, under the 1099 "type" field, all are pre-filled "rent" and there is no way of setting this vendor to be tracked for a 1099-NEC.  I went ahead and submitted for e-file as a 1099-Misc since that is the only option allowed by QB Online.  The IRS has accepted the 1099-Misc.  I hope the tools provided by QBO Payroll 1099 e-file are more useful next year.  

octoberfermen
Level 1

Why does QBO insist on e-filing a 1099-Misc. instead of 1099-NEC for a snow plowing service?

I just posted in the field in the e-mail you sent.  I will not write it again.  

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