New 1099 NEC preparation

Thanks for posting here, @lpenney18,

Processing 1099-NEC report shouldn't be a worry for you. Let me guide you through the steps on how to get the information pulled up correctly for reporting.

The most important step to remember when processing the NEC form is making sure the payments are mapped correctly. You also need to keep in mind the threshold of the form you're pulling up. The information that will post on the 1099 forms are based on the how you map them.

Follow the steps below:

1. Go to Vendors, then select 1099 Forms, then Print/E-file 1099 Forms.
2. Create a back up.
3. Select Get started for the 1099 form you want to create. Choose “Nonemployee compensation, Box 1 on the 1099-NEC, but check with your accountant if you think you might have made other types of payments.
4. Pick the vendors that need 1099 form and select Continue.
5. Double-check the vendor information if it's correct. You can edit any incorrect information by double-clicking on the section that needs updating. Select Continue.
6. Map the vendor payment accounts. Go to the drop-down in the Apply payments to this 1099 box section. Select the account you want to link the payment to. If any boxes are gray, they are mapped to the other 1099 form. You only map accounts to one 1099 form.
7. When complete, select Continue.
8. Review your payment information for exclusions. For more information on what can be excluded see What payments are excluded from a 1099-NEC and 1099-MISC? Select View Included Payments or View Excluded Payments to see detailed reports. Select Continue.
9. Review the vendors and amounts you're going to report. Select Continue.
10. Choose whether to print 1099s or e-file. If you choose to continue to e-file your 1099s, follow the steps below.

For further guidance, see the following articles:

• Understanding payment categories for the 1099-MISC and 1099-NEC
• Create and file 1099s with QuickBooks Desktop
• How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing
• What payments are excluded from a 1099-NEC and 1099-MISC?

If you have any questions with the accounts and filing, contact our Support Team for a viewing session. Refer to this article to learn more about our contact options and support availability: Contact QuickBooks Desktop support

Kindly post an update here. I'll be right here if you need further help with 1099 processing in QuickBooks Desktop. Have a nice day!

Thank you, this helped a lot! I have a few other questions if you happen to know the answers.... does rent still need to go on a 1099 MISC form? I have done research and have determined that the NEC seems appropriate for all our 1099 vendors but seems that rent is still a 1099 MISC, at least from my understanding. If that is the case, any idea how we order one, or even just a small pack of 1099 MISC? We are a small business and still file with paper forms, but I will need about 60 1099 NEC forms now and just one 1099 MISC and it would not be cost effective to have to order a large pack of both forms, the smallest I have ever found is a pack of 25.....

Thanks for getting back to us, @lpenney18.

Your research is correct. Rent still needs to go on the Form 1099-MISC. You're required by the US tax law to file one for anyone you've paid more than $600 in the previous year. With this, you can conveniently order the said tax form at our Intuit Market Place. It supports all our different payroll services.

Since you'll be needing 60 1099-NEC and just one 1099-MISC forms, I'd recommend contacting our Intuit Market Place Customer Care team. You can call them through the phone number provided in the article's How do I order W-2, W-3, 1099, and 1096 forms? section. They're able to provide you good options to effectively manage the number of forms you can order.

This tax year 2020, the IRS has separated non-employee compensation onto a new form called the 1099-NEC. With this, they revised the Form 1099-MISC and rearranged box numbers for reporting certain income. You can refer to this article to learn more about the boxes of the above-mentioned forms: Payment categories for the 1099-MISC and 1099-NEC.

Feel free to click the Reply button below if you have follow-up concerns about payroll tax forms or other inquires. I'll be around to help. Take care always