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LANDYRAY
Level 3

1099 NEC

regarding 1099NEC and 1099MISC....I will have to file both forms...but not for the same vendors.  I do not have a single vendor that will require both forms being sent...so do I need to do anything with my chart of accounts?

99 Comments 99
Jovychris_A
QuickBooks Team

1099 NEC

Hello there, @LANDYRAY.

 

Yes, you'll have to make some updates to your chart of accounts if you need to file both 1099-NEC and 1099-MISC even for different vendors.

 

You can reference this article about how to change and add a new account that you can work on: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing. The details are there for a seamless workflow, and then click the QuickBooks Desktop Payroll section for the steps.

 

Also, you can go to this article to check more info on what forms or boxes you can choose when entering for both non-employee compensations: Understand payments categories for the 1099-MISC and 1099-NEC.

 

I'll jump in if you have other questions to add. I'm always here to lend you a hand. Stay safe!

LANDYRAY
Level 3

1099 NEC

when you say "update" my chart of accounts, do you simply mean re-map the accounts?  I'm sorry...I'm very confused...I have 5 vendors that I pay rent to with the expense account Rent Expense--they will get the 1099MISC...all other expense accounts (R&M, Truck, Tire, etc.) are always non-employee compensation.  So wouldn't I just go make sure that those accounts get re-mapped for box 1 on the 1099NEC?  I'm not sure where creating a new expense account comes in.  I can't recategorize expenses because of tax return purposes.  I'm just confused.

MaryJoyD
QuickBooks Team

1099 NEC

I can share additional information about modify your chart of accounts for your 1099-MISC and 1099-NEC filing, @LANDYRAY.

 

For the tax year 2020, the IRS has separated nonemployee compensation onto a new form called the 1099-NEC for the tax year 2020.

 

Right now, the IRS has revised Form 1099-MISC and rearranged box numbers for reporting income. You'll need to adjust your chart of accounts to ensure each form has accounts set up specifically for it. Then, 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.

 

You can follow the steps provided by Jovychris_A on how to modify your chart of accounts for your 1099-MISC and 1099-NEC filing

 

Stay in touch if you still have questions with your account. I'm always here to help. Have a wonderful day!

LP78704
Level 2

1099 NEC

Are you suggesting setting up a new account on the COA called 1099-NEC and another called 199-MISC? A Journal Entry would be made to move the dollar amounts paid to each vendor to the correct 1099 account?

LANDYRAY
Level 3

1099 NEC

i know...this is still very confusing.  In my case, I have 5-vendors that I ONLY pay rent to.  These 5 will get the 1099MISC.  I would think that all I would need to do is make sure that my Rent Expense account is mapped for the appropriate box.  All of my other vendors will fall in the NEC.  I should only have to go and re-map those for the 1099NEC.  I'm still uncertain why you would need to make new accounts and make a journal entry to move the amounts....unless you have a vendor that needs both the MISC and the NEC

LP78704
Level 2

1099 NEC

I tried doing this and now on the Profit & Loss statement the expenses are lumped into one 1099-NEC or 1099-MISC account. This will make the filing of taxes to the IRS incorrect as the expenses are no longer broken out by the individual account. There needs to be a better solution than creating a Journal Entry to move all entries into one account for 1099 creation purposes. 

LANDYRAY
Level 3

1099 NEC

i knew that would happen if I did the same thing.  You can't simply move amounts and recategorize expenses.  I would think, that if you had a vendor that needed both the MISC and the NEC, that it would be easier to simply create a 2nd "vendor name" for that particular vendor....you can do this by simply adding a "period" at the end of their company name...then go and change the vendor name on the bills instead of changing the accounts.  Just make sure that the vendor company name still matches the reported name on the W9 that they submitted to you.  This is the only idea that I have for you.  as I stated earlier, I don't have a vendor that will get both a MISC and a NEC...I really think that all I would need to do is make sure that my Rent expense is mapped for the correct box on the MISC and that all other accounts are mapped for the correct box on the NEC.

LP78704
Level 2

1099 NEC

I submitted a suggestion to improve this before we have to file the 1099s. These instructions are not an acceptable remedy to the new 1099s in my opinion.

mtch24
Level 2

1099 NEC

Did you happen to figure out if you can remap and change the name for the new 1099 NEC?? Example, old version has "Box 1 rent."  Can you change it to "Box 1 NEC"??

LANDYRAY
Level 3

1099 NEC

i just went to my 1099 Wizard to see what the options look like...the 1099NEC is not even listed.  Did QB even send an update to include it yet?

AlcaeusF
Moderator

1099 NEC

Hi @LANDYRAY,

 

Welcome to the Community. Let me share some clarification regarding the 1099 form in QuickBooks.

 

We'll be supporting the new 1099 NEC form for users using Intuit payroll services. However, we haven't rolled out an update yet in QuickBooks.

 

For Desktop (Assisted and DIY), the estimated date for the new tax table will be the 3rd week of December. If it's time to update, you can follow these steps:

 

Here's how:

 

  1. Click the Employees tab at the top menu bar.
  2. Select Get Payroll Updates.
  3. Choose Download entire payroll update.
  4. Hit Update

Additionally, I recommend visiting the following article for any updates regarding the 1099 forms: What is a 1099 and do I need to file one?.

 

Drop me a comment below if you have any other questions. I'll be happy to help you some more.

shislop
Level 3

1099 NEC

How do we complete the 1099 mapping to reflect the different 1099 forms? Also, could a user change the mapping of existing accounts to the different form options (and type of payment options) instead of setting up new accounts? Using a journal entry is not a workable solution due to the long term effect on financial and management reports.

katherinejoyceO
QuickBooks Team

1099 NEC

Hi there, @shislop

 

Thanks for visiting the Community today. I'm here to guide you in completing the 1099 mapping to show the different 1099 forms. 

 

To achieve this, we need to adjust your Chart of Accounts to ensure accounts are set up on each form. By adding a new account to your chart of accounts, we can track the payment separately. Here's how: 

 

  1. Go to the Lists menu, then choose Chart of Accounts.
  2. Click the Account dropdown, then choose New to create a new account.
  3. Choose an account type of Expense, Other Expense, or COGS, then click Continue.
  4. Enter the Account Name and details such as DescriptionNote, and Tax-line Mapping.
  5. Select Save & Close.

 

You can follow the same process for each new account to report on the 1099-NEC.

 

Then, we still need to add a journal entry to move the amounts to the new account. For more details, you can check out Step 4: Move the payments to the new account outlined in this article: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing.

 

I'd also suggest you consult an accountant for more guidance if journal entry isn't the best option for you. 

 

I'm always here to guide you some more if you have additional questions about 1099, @shislop. Take care. 

LANDYRAY
Level 3

1099 NEC

this cannot work like what you're suggesting.  no-one can simply change the category of expenses to one account (truck, r&m, tire, etc.) to a new NEC account.  doing this will alter everyone's P&Ls and will not be correct for tax returns.  QB needs to find a way to be able to simply map expense accounts to the correct 1099.  Please find a way.  I'm urging everyone NOT to add new accounts and make a journal entry until more investigating can be done.  This will be a nightmare for you if you do.  Please be careful.

cpow90
Level 1

1099 NEC

Thank you for asking this question.

I'm following this conversation in hopes of a solution as well.

fran holden
Level 2

1099 NEC

I am also following this conversation.  Agree that Intuit needs to provide a way to route the EXISTING expense account(s) to the correct 1099 form!!!!!!

shislop
Level 3

1099 NEC

Thank you for the quick response, but it did not answer my question.

Following your instructions to add new accounts still does not provide a way to map the new accounts appropriately for the 1099 MISC and 1099 NEC. 

However adding new accounts is not a workable solution as it will alter financial reporting. 

**Ideally users would be able to map existing accounts to the correct 1099 form and appropriate box on each form (as we already do).  **

rbrassine
Level 2

1099 NEC

This still makes no sense whatsoever.  Accounts are mapped to a particular 1099 form and box.  So why are we having to set up accounts?  Then make a journal entry...then delete the journal entry.  This is absolutely absurd.  If you set up the new 1099-NEC in Quickbooks, we should be able to map EACH account to a particular 1099 form AND box when the time comes.  I am wondering if the people answering the questions understand what accounts we are supposed to set up and what journal entry you propose we make?  Your article doesn't state that so I'm wondering what you propose we call this new GL account?  

LMG5
Level 1

1099 NEC

Hello,

 

I have been reading through this conversation and totally agree with you.  I am so glad to see someone has the same ideas I do.  The QB solution doesn't make sense.  And if we use journal entries to move the amounts the amounts will no longer be associated by vendor.  It will just be one lump sum.  How will that work to print on the 1099 NEC?

rbrassine
Level 2

1099 NEC

Exactly!

jewelz1
Level 2

1099 NEC

Following this as well for a more acceptable solution.

Charies_M
Moderator

1099 NEC

I appreciate everyone for coming in to this thread.

 

The updates regarding the new 1099 NEC form in QuickBooks Desktop is still haven't rolled out. Please stay tuned as we are working on making this available as soon as possible.

 

You may want to keep this article handy. We'll be updating this article for further additional information: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing.

 

We'll also make sure to keep you on track through this thread. If you have other concerns, just let me know. Have a good one.

Meglja
Level 1

1099 NEC

So as I understand it these "kinks" will be worked out in an updated slated to come out December 17, 2020.  This per a QB help line employee.  Also, in my past experience, a journal entry will not be picked up in the 1099 detail and be reported.  They are instructing to use a journal entry to move payments, but in the past only checks or bill payments show up as being reported, NOT journal entries.  I don't know if this is being addressed or not, but it has burned me in the past.

Carolynj20
Level 1

1099 NEC

I have read all of the posts so far and agree with the customers that use QB.  The instructions are unclear and unworkable. Responding to concerns asking us to read the current article doesn't work.  I've used QB for over 20 years, some of that as a ProAdvisor.  The accountants don't know more about how QB works than the users. Using JEs to move money between accounts will not affect the 1099.  Lumping all of the 1099 Misc and 1099 NEC payments into two accounts is not going to work for financial reporting. Creating new accounts appended with Misc or NEC will make our already long COA unworkable and confusing.  

It seems that it should work via 1099 mapping to the existing COA.  If a vendor is both MISC and NEC, a period behind a new Vendor card seems doable as long as the AP person understands. 

QB - please come up with a workable solution before we get into the year end rush to finalize and close 2020.

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