Modify your chart of accounts for your 1099-MISC and 1099-NEC filing

Step 1: Create a 1099 Transaction Detail Report

Identify the amounts paid and to which accounts.

1. Choose Reports.
2. Search for the 1099 Transaction Detail Report.
3. Run the report and verify the amounts are showing in the correct accounts for the 1099-NEC and 1099-MISC. This will allow you to map the accounts as you go through the 1099 process.
   You can also use the 1099 Contractor Balance Detail or 1099 Contractor Balance Summary reports if either of them add more information.

Step 2: Add a new account

Add a new account to your chart of accounts to track the separate payments.

1. Go to Settings ⚙, then select Chart of accounts.
2. Select New.
3. Enter a name in the Account name field. (ex. 1099-NEC Federal Income Tax Withheld)
4. Select the Account type ▼ dropdown, then select the type of account.
5. Select the Detail type ▼ dropdown, then select the appropriate detail type. Learn more about detail types.
6. Optionally, enter a description in the Description field.
7. Select Save.

Repeat this process for each new account to be reported on the 1099-NEC or 1099-MISC.

Step 3: Move the payments to the new account.

You can choose to create a journal entry to move amounts to show in the newly created 1099-NEC or 1099-MISC accounts or you can edit existing payments to the new accounts.

Add a journal entry

1. Select New +, then select Journal Entry.
2. Fill out the fields to create your journal entry.
3. Select Save and new or Save and close.
4. Repeat this process for each payment you need to move.

or

Edit existing contractor payments

1. Select Expenses.
2. Filter the transactions to identify the contractor payments you need to edit.
3. Once the payment has been located, you can either select View/Edit to go into the transaction or select the Category dropdown and select a new account.

Step 4: Validate your changes

Create a 1099 Transaction Detail Report to validate the changes to your accounts.

1. Choose Reports.
2. Search for the 1099 Transaction Detail Report.
3. You should see the changes reflected.

Once these steps are completed, you are ready to begin filing your 1099-MISC and 1099-NEC forms.

Step 1: Backup your QuickBooks Desktop file

Before you begin to adjust your QuickBooks Desktop file, create a back up. If you will need to amend prior year forms, you will need to restore this backup to access the forms and data from before 2020. The data for prior years will not show accurately once you map the new boxes on the new forms.

Step 2: Create a 1099 Summary report

Identify the amounts paid and to which accounts.

1. Go to Reports, then select Vendors & Payables.
2. Choose either 1099 Summary or 1099 Detail.
   Note: Reports will default to the Last Calendar Year, so be sure the report is set up for the correct date range next to Dates at the top of the report.
3. Use the 1099 Summary to identify the vendors and the 1099 Detail to identify the transactions. Review the totals under to determine what amounts may need to be moved.
   Important: Once you edit your accounts or payments, your previous reports will update and not reflect prior year filings. You may want to print these reports for your records before making any adjustments.

Based on your needs to file both the 1099-MISC and 1099-NEC you will need to adjust your Chart of Accounts to ensure accounts are set up specifically for each form.

Step 3: Create a new account

Add a new account to your Chart of Accounts to track the separate payments.

1. Go to Lists, then select Chart of Accounts.
2. Select the Account dropdown, then choose New to create a new account.
3. Select an account type of Expense, Other Expense or COGS, then select Continue.
4. Enter the Account Name and details such as Description, Note and Tax-line Mapping.
5. Select Save & Close.
6. Repeat this process for each new account to be reported on the 1099-NEC or 1099-MISC.

Step 4: Move the payments to the new account.

You can choose to create a journal entry to move amounts to show in the newly created 1099-NEC or 1099-MISC accounts or you can edit existing payments to the new accounts.

Add a journal entry

1. Go to Company and select Make General Journal Entries.
2. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
3. Select Save & Close or Save & New if you have more entries to make.
4. Repeat this process for each payment you need to move.

Edit existing contractor payments

1. Select Vendors then Vendor Center.
2. Choose the vendor and locate the transactions you need to edit.
3. Double-click to open the transaction to make your edits.
4. After you have made the changes, select Save & Close.
5. Repeat this process for each payment you need to change.

Step 5: Create a 1099 Summary report

Run a 1099 Summary or 1099 Detail report to validate the changes to reflect the correct amounts in each account for both the 1099-NEC and the 1099-MISC.

1. Go to Reports, then select Vendors & Payables.
2. Choose either 1099 Summary or 1099 Detail.
   Note: Reports will default to the Last Calendar Year, so be sure the report is set up for the correct date range next to Dates at the top of the report.
3. You should see the changes you made reflected.

Once these steps are completed, you are ready to begin filing your 1099-MISC and 1099-NEC forms.

Step 1: Backup your QuickBooks Desktop file

Before you begin to adjust your QuickBooks Desktop for Mac file, create a back up. If you will need to amend prior year forms, you will need to restore this backup to access the forms and data from before 2020. The data for prior years will not show accurately once you map the new boxes on the new forms.

Step 2: Create a 1099 Summary report

Identify the amounts paid and to which accounts.

1. Go to Reports, then select Vendors & Payables.
2. Choose either 1099 Summary or 1099 Detail.
   Note: Reports will default to the Last Calendar Year. Select Customize to be sure the report is set up for the correct date ran. You can also adjust the 1099 option to narrow your 1099 form type.
3. Use the 1099 Summary to identify the vendors and the 1099 Detail to identify the transactions. Review the totals under to determine what amounts may need to be moved.

Based on your needs to file both the 1099-MISC and 1099-NEC you will need to adjust your Chart of Accounts to ensure accounts are set up specifically for each form.

Step 3: Create a new account

Add a new account to your Chart of Accounts to track the separate payments.

1. Go to Lists, then select Chart of Accounts.
2. Select the + button to create a new account.
3. Select an account type of Expense, Other Expense or COGS.
4. Enter the Account Name and details such as Description, Note and Tax-line.
5. Select OK.
6. Repeat this process for each new account to be reported on the 1099-NEC.

Step 4: Move the payments to the new account.

You can choose to create a journal entry to move amounts to show in the newly created 1099-NEC accounts or you can edit existing payments to the new accounts.

Add a journal entry

1. Go to the Company menu and select Make General Journal Entries.
2. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
3. Select Save & Close or Save & New if you have more entries to make.
4. Repeat this process for each payment you need to move.

Edit existing contractor payments

1. Select Vendors then Vendor Center.
2. Choose the vendor and locate the transactions you need to edit.
3. Double-click to open the transaction to make your edits.
4. After you have made the changes, select Save.
5. Repeat this process for each payment you need to change.

Step 5: Create a 1099 Summary report

Run a 1099 Summary or 1099 Detail report to validate the changes to reflect the correct amounts in each account for both the 1099-NEC and the 1099-MISC.

1. Go to Reports, then select Vendors & Payables.
2. Choose either 1099 Summary or 1099 Detail.
   Note: Reports will default to the Last Calendar Year. Select Customize to be sure the report is set up for the correct date ran. You can also adjust the 1099 option to narrow your 1099 form type.
3. You should see the changes you made reflected.

Once these steps are completed, you are ready to begin filing your 1099-MISC and 1099-NEC forms.