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Community Explorer **

Override Exclusion of credit card payments from 1099 Reporting

I have QuickBooks Pro Desktop 2016. I have an exception situation where I need to include credit card transactions for a vendor in 1099 reporting. Is there a way to override the exclusion temporarily? 

11 Comments
QuickBooks Team

Re: Override Exclusion of credit card payments from 1099 Reporting

Hi there, @AveryAssistance.

 

Thanks for checking us out here in the Community. I'm here to help and get you pointed in the right direction.

 

When preparing 1099 forms, IRS requires 1099 filers to exclude any payments you made to a 1099 vendor by credit card, debit card, gift card, or a third-party payment network such as PayPal from Form 1099-MISC. These payments are considered as non-reportable payments. These payments are reported by the card issuers and the third-party payment networks on Form 1099-K. 

 

To ensure that you file your 1099 for correctly, I'd suggest checking out with your accountant for further assistance. 

 

For more insights about preparing 1099 forms, please check out these articles: 

This will help you prepare your 1099 forms accurately.

 

Feel free to reach back out to us if you need additional assistance. We're always here to lend a helping hand. Have a great weekend!

Established Community Backer ***

Re: Override Exclusion of credit card payments from 1099 Reporting


@AveryAssistance wrote:

I have QuickBooks Pro Desktop 2016. I have an exception situation where I need to include credit card transactions for a vendor in 1099 reporting. Is there a way to override the exclusion temporarily? 


Along with what intuit Bettyjane said which is correct

 

what or why do you have that exception for including CC payments on a 1099-misc?

Established Community Backer ***

Re: Override Exclusion of credit card payments from 1099 Reporting

@AveryAssistance

 

You don't do this for any reason: "I have an exception situation where I need to include credit card transactions for a vendor in 1099 reporting."

 

The Credit Card Provider is responsible under the 1099-K regulations.

 

You fall under the 1099-Misc regulations.

Active Member

Re: Override Exclusion of credit card payments from 1099 Reporting

so what happens if you don't receive a 1099 from the credit card companies who paid you?

QuickBooks Team

Re: Override Exclusion of credit card payments from 1099 Reporting

Hello there, @laurie7112.

 

Thank you for joining this thread. I can share some insights about receiving 1099-K.

 

You will receive the 1099-K form if you processed at least 200 card transactions and $20,000 in gross sales during the prior calendar year. If you've met these criteria, you should receive a copy from the credit card companies who paid you. If you believe you should have received a 1099-K and have not received one, consider contacting your credit card provider.

 

This form should be filed to avoid being penalized, @laurie7112.

 

Keep me posted if you have additional questions. I'm still here to help you more. Have a good one.

Community Contributor *

Re: Override Exclusion of credit card payments from 1099 Reporting

They absolutely are not reported by Paypal or the CC companies!  PP has a threshold of 20 K and 200 transactions before a 1099 K will be issued.  CC companies don't ask for W9's so how would they issue a 1099?  I just got done cleaning up a mess from a CPA telling the former clerical gal that was doing the books to not issue a 1099 for CC payments 

If I hadn't reviewed the books the vendcors would have gotten away with not having 8 - 25 K of income reported 

I verified with every vendor and nope - none of them in 4 years performing services for my new client EVER got a 1099 from with PP or the CC company

Community Contributor *

Re: Override Exclusion of credit card payments from 1099 Reporting

Why wouldn't you "make an exception"?  The CC company and PP don't know my EIN or the other vendors so I push it into a "bank clearing" so make it all go into the 1099 reporting 

Community Contributor *

Re: Override Exclusion of credit card payments from 1099 Reporting

So you're ok with vendors not reporting income because it's under 20 K and 200 transactions?  I'm not.  I'll issue the 1099s to them all if I know for a fact they won't get one otherwise 

Moderator

Re: Override Exclusion of credit card payments from 1099 Reporting

Hi there, @Noneatall,

 

Thanks for joining our forum and for sharing in depth details about your concern. I can add a bit more about the processing 1099 reports to the IRS.

 

As stated in the IRS Instructions for Form 1099-MISC, credit card payments, including third-party network transactions should be reported on Form 1099-K by the payment settlement entity under section 6050W, and are not subject to reporting on Form 1099-MISC.

 

To make sure you are reporting the amounts correctly, I'd recommend getting in touch with the IRS Support. There they can give you the complete instructions on what form you need to use for your vendor payments. You can also check this IRS publication to know more about the 1099 K form: Instructions for Form 1099-K (Payment Card and Third Party Network Transactions)

 

That should do it, @Noneatall. Please feel free to post here in the Community if you have any more questions with QuickBooks. i'll be glad to help. Have a great day!

Community Contributor *

Re: Override Exclusion of credit card payments from 1099 Reporting

I know exactly how they SHOULD be reported but the fact remains that they are not being reported by the CC processor.  How could they be when the CC processor has no clue what the EIN or SSN's are? 

I don't need to contact the IRS support.  I know what I'm doing thanks.  

I refuse to let people get income and not have it be reported due to the CC issue so I figure it by hand and 1099 them for it. 

Community Explorer **

Re: Override Exclusion of credit card payments from 1099 Reporting

Thank you for your repsonses. I understand the law regarding reporting. It was for an audit situation where I needed to report all 1099 payments whether paid by credit card or check. I just used customized reports.

 

Thanks!