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Frequent Explorer **

Backup Withholding

We have a 1099 contractor that wants to have state backup withholding taxes taken out.  When I set up a other current liability account (like I have for federal backup withholding) and set it up as tax line mapping 1099 - state taxes withheld it is telling me that it is the incorrect account to use with that tax line mapping?   

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Best answer 04-09-2019

Accepted Solutions
QuickBooks Team

Re: Backup Withholding

Hi, Allied3.

 

I already updated my post above with the complete details, please check. 

View solution in original post

3 Comments
QuickBooks Team

Re: Backup Withholding

Hi there, Allied3.

 

I'm here to help isolate the error you're getting so you'll be able to process 1099-MISC successfully. 

 

Before we begin, let's make sure that your QuickBooks Desktop is updated to the latest release.

 

First, you'll need to create a bill or check to record the expense transaction including the vendor withholding with a negative amount (attached screenshot). Bill transaction.PNG

 

Once done, when mapping an account in the QuickBooks 1099 Wizard window, the expense transaction will show on the Box 7 and the other current liability account will show on the Box 16. Also, to ensure your IRS threshold is updated, you can select the Show IRS 1099-MISC filing thresholds below and click Reset to IRS threshold (attached screenshots).

1099 Wizard.PNG

IRS thresholds.PNG

For additional reference, you can check these articles to learn more about 1099:

This will get you on the right track. Don't hesitate to leave a comment below if you have other questions about the 1099-MISC. I'll be around to help. Have a good one. 

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Frequent Explorer **

Re: Backup Withholding

This does not answer why I am getting that error and what can be done to correct it.  

QuickBooks Team

Re: Backup Withholding

Hi, Allied3.

 

I already updated my post above with the complete details, please check. 

View solution in original post

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