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QuickBooks Team

Override Exclusion of credit card payments from 1099 Reporting

Hi, @cbemusic.


Allow me to share with you some additional information about 1099s in QuickBooks Desktop.


Yes, payments made via a credit card or third-party system such as Paypal are excluded from the 1099 calculations since the financial institution (PayPal) reports these payments for you. Since you didn't pay your vendor through PayPal, you need to record a vendor payment transaction/s manually and make sure to add the account/s when mapping your 1099s.


For additional resources when preparing your Federal forms, I recommend checking out these articles:



If you need to make corrections on your form, you can refer to this Tax1099 article: What kinds of corrections can I make to 1099 forms after they have been submitted?.


If you have any other questions about excluded payments, please let me know by adding a comment below. I'm always here to help. Have a good one!

Level 2

Override Exclusion of credit card payments from 1099 Reporting

Hi, thanks for writing. I did, in fact, pay my vendors through PayPal - just via the "friends/family" option which apparently won't send out 1099's. And QBO won't let me create manual 1099s which is all I want to do. 


Override Exclusion of credit card payments from 1099 Reporting

Thanks for posting again, @cbemusic,


Payments through PayPal are excluded from Form 1099-MISC but should be reported in a 1099-K form. You can pull up this information in our program if you're using QuickBooks Payments for credit card, debit card, gift card, or a third-party payment network payments.


See this detailed article to learn more about downloading 1099-K forms in QuickBooks: Intuit 1099-K Form


However, for payments processed outside the program, the third-party provider should provide the 1099-K form.


In your case, if you pay a person or business via PayPal's Friends and Family option, you will need to a 1099-NEC to them. PayPal assumes it's a personal or non-business transaction and won't include it in their 1099-K.


If these payments are supposed to be reported in a 1099-K form, you can go to the IRS website and fill it our manually. Here is the link to get the IRS 1099-K Form


Let me know if you have anymore questions about this. Filing the correct forms is essential and I'm always here if you need further help with it. Have a good one!

Level 3

Override Exclusion of credit card payments from 1099 Reporting



I paid the bill from a "Cash Payout" account.


"Paid bill using Cash Payout account (or use a barter account), I prefer something other than the operational account.

Then I went into the Cash Payout register and without using Joe Smith

I credited out the payment to Internet Advertising" 

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