1099s

I thank you for the complete details you've shared, @ihatetaxes1.

When preparing your vendor's 1099 form, you'd want to make sure that it meets all the necessary criteria. 

• You tagged it in QuickBooks as a 1099 vendor. 
• Vendor payments made through credit card, debit card, or PayPal have are excluded from the list. For electronic payments, the credit card companies and payment companies will handle any required reporting.

Once you have reviewed your vendors information, you can try viewing your vendor or contractors 1099 list. Here's how:

1. Go to the Expenses menu.
2. Select Vendors tab.
3. Click Prepare 1099s in the upper right.
4. Choose Continue your 1099s.
5. Navigate to the Accounts page. 
6. From the Review your vendors/contractors info window, click the Add from the Vendors list.
7. Mark the tick box of all the vendors you want to include. 
8. Click Save.
9. Follow the onscreen instructions to complete the process.

Lastly, you can read through these articles to further assist you with managing your 1099-related transactions:

• How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing

• Create and file 1099s using QuickBooks Online

• Troubleshoot common 1099 issues

Leave a comment below if you have other questions or concerns. I'm always here if you need anything else.  

My vendors are set up as you suggested; however, the problem is unchanged.  I've attached a pic below that might help. I'm going to send a second image as well. 

With my first picture, I didn't understand why those two vendors were marked as below the threshold when the amount paid clearly exceeds that. With this image, I'd like to know why part of a payment is marked as excluded. Thanks. 

Hi @ihatetaxes1,

Thank you for your prompt reply, as well as for sharing screenshots. I'm here to clear things up for you. 

QuickBooks Online (QBO) automatically exempts vendor payments made through credit cards, debit cards, or third-party systems such as PayPal. In this situation, it's the financial institution that reports these payments, so you won't have to. 

To confirm if all other vendor payments should be tagged as excluded, you can run the Excluded Payments by Vendor report.

Here's how:

1. Highlight the Expenses tab.
2. Select Vendors.
3. Tap Prepare 1099s.
4. Move to the  Preview 1099 and 1096 Information section.
5. Click the Total 1099 Payments Excluded column.
6. Double-click the total on this column to see the Excluded Payments by Vendor report.

Open this article for more information: What payments are excluded from a 1099-NEC and 1099-MISC?

Feel free to post a reply below if you have other questions about your 1099 form in QBO. I'll get back to you as soon as I can.

Thanks, but there's still an inconsistency. In this image, the person in the red invoices through QB, but none of those payments were excluded. Why not? Also, if a vendor invoices through paypal, why aren't they excluded? The yellow vendor and most of blue vendor's payments were invoiced through paypal.

I'm not giving up on this issue, and I've got some further troubleshooting to help you @ihatetaxes1.

Thank you for the screenshot you've provided and for following the steps outlined by my colleagues. To exclude the payment made through PayPal, let's open the transaction and edit the payment and have it list under PayPal.

1. Open the payment.
2. Choose PayPal as the Payment account.
3. Enter the date in the Payment date field.
4. Input the Reference no. 
5. Hit Save and close when done. 

Once done, process 1099 again. 

Also, I encourage you to visit our 1099 tutorial page. This will help you earn more QuickBooks knowledge that can help you with your 1099 tasks.

If you have further questions about creating and filing 1099 in QuickBooks, feel free to post here again. I'm always around to help. Have a good one.