Paying vendors by "debit" from our bank account

DP108 · ‎November 22, 2023

When we pay our vendors by debit, we record the transaction by putting "Debit" in the check number field. However, This does not generate a 1099. I know I can use another word besides debit, but is there another way that this payment should be recorded?

Also, can anyone tell me if there are any other "words" that are put in the reference number field that will cause the system to NOT populate the 1099?

Nicole_N · ‎November 22, 2023

Hi there, @DP108. I'll share some information about paying vendors by debit in QuickBooks Desktop (QBDT).

Please know that the IRS requires certain contractor payments not to be included on the 1099-MISC and 1099-NEC forms and are instead reported on the 1099-K form. These include payments to 1099 vendors made via credit card, debit card, or third-party systems, such as PayPal, which are excluded from the 1099-MISC and 1099-NEC calculations.

For more information, check out this article: Understand which payments are excluded from a 1099-NEC and 1099-MISC. This also includes information if you want your contractors to get a 1099-K.

If you have other 1099 questions or concerns, simply leave a reply below. The Community team is here for further assistance.

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Paying vendors by "debit" from our bank account

Paying vendors by "debit" from our bank account

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