Let me guide you on how to exclude the Zelle payments on your 1099-NEC, sal8.
The 1099 vendor's payments made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. The financial institution reports these payments, so you don't have to. Also, the amounts reported in 1099 are based on the expense accounts you've mapped for each transaction type. See What payments are excluded from a 1099-NEC and 1099-MISC? for more details about this one.
To exclude the Zelle payments from your 1099, just change the transaction category that isn't included in the mapped category of Box 7. I'd suggest consulting your accountant or tax preparer first if it's advisable to exclude those amounts. Here's how:
- Click Expense on the left menu.
- Choose Vendors.
- Select the vendor/company name.
- Find the transaction and click View/Edit under the Action column.
- Under the Category column, change it into a fferent category type.
- Press Save and close.
Just in case you're stuck in your 1099 preparations, check out the Troubleshoot common 1099 issues article to troubleshoot the problem. Visit our Taxes page for more insights about managing your taxes in your account.
I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Feel free to reply to this post and I'll get back to you. Take care always.
