Does Intuit E-payment report transactions on Form 1099-K?

Welcome back to QuickBooks Community, MLom. I'll share information on when you'll need to file Form 1099-MISC and Form 1099-NEC. Then, details about reporting Form 1099-K.

You're asked by U.S. tax law to file a Form 1099-NEC for anyone that you paid $600 or more in the previous year. You’ll also have to file a Form 1099-NEC for any person you’ve withheld any federal income tax from under the backup withholding rules. If you have previously reported any information on Box 7, which is the total amount of non-employee compensation, this detail is now reported on the 1099-NEC.

You're expected by U.S. tax law to file a 1099-MISC form for anyone that you paid $600 or more in the previous year. Unlike the 1099-NEC, the payments found on a 1099-MISC are geared towards vendors, attorneys, and other individuals who are not a proper contractor.

On the other hand, yes, the IRS (Section 6050W of the IRS Code) requires reporting of all payment card and third-party network transactions to file an annual information return with the IRS and provide you with a Form 1099-K. Which reports monthly and annual gross credit card transaction sales. A 1099-K form will be available by January 31st of each year. In April of each year, QuickBooks Payments will file a copy of the 1099-K with the IRS. To comply with this law, it is important that we have your correct taxpayer ID number (TIN) and tax filing name. For additional information, you can click this article: Tax Compliance for Credit Card Accounts.

Please refer to this article to see details on how and why Intuit generates a 1099-K form: Intuit 1099-K Form.

Feel free to reply to me anytime if you still have questions or clarifications with the forms. I'll be around for you. Take care and have a great rest of the week.

Actually, I’m looking for a straightforward answer. Does Intuit E-payment report transactions on Form 1099-K by the payment settlement entity under section 6050W? Yes, or not? Anyway, thank you for your time and consideration.

Hi @MLom,

I appreciate your prompt reply. 

To answer your question, yes, we do report card transactions on your Form 1099-K.  We abide by the instructions provided by IRS with regards to section 6050W. 

I'll share this article with you: Tax Compliance for Credit Card Accounts. It has a list of FAQs about Form 1099-K, along with their answers. 

Place a comment below if you have other queries about this form. I'll get back to you as soon as I can. 

If a customer pays us from an Intuit Invoice on the Merchant Service invoice system, then I assume our 1099k will include those payments no matter if paid via checking ach or credit card, since Intuit charges us a fee for all and it is part of their network.  Since we will get a 1099k, I assume the vendor that paid us will not issue a 1099  if they paid us directly through an Intuit Invoice that is linked to our merchant service system. 

We need to make sure this is very clear so people are not getting duplicates.  Without good clarity we will have an accounting mess in all directions.  Intuit needs to ensure they set clear guidelines.  Also, Intuit needs to ensure we have a way to code for Intuit, Cash App, PayPal, Venmo and the like type payments going forward so those are not all popping up on `1099 worksheets like we need to 1099 them also.  Currently only credit card payments are removed, all others are there.

Tena_Lewey, I am looking to get this exact confirmation!  I'm wanting to make sure that the ACH payments made through Quickbooks payments are a part of their 1099K amount. 

Can someone at Quickbooks confirm?

Thanks for joining this thread, AnnaE.

1099-K forms provided by Intuit for QuickBooks Payments accounts include data from payment card and third-party network transactions. ACH transactions won't be covered on 1099-K forms. Instead, they're covered on 1099-NEC forms, which also covers payments by cash and check.

I've also included a couple detailed resources about working with 1099s which may come in handy moving forward:
 

• Intuit Form 1099-K
• Create & file 1099s

If there's any additional questions, I'm just a post away. Have a lovely day!

Thank you ZachE.  You saying "ACH transactions won't be covered on 1099-K forms. Instead, they're covered on 1099-NEC forms, which also covers payments by cash and check" completely clears up the grey area of "3rd party payment transactions" getting a 1099-K issued by Intuit.  I pay independent contractors via Intuit's ACH Direct Deposit payment system, but I also wire funds and send checks to the same vendors.  I now know that my 1099-NEC will cover ALL payments to my independent contractors  and that Intuit will not be sending them 1099-Ks for the direct deposit portion of their payments.  Thank you again.

 Hi there, @frankfivefinancial. 

I'm glad that you find it helpful. Thanks for posting in the Community.

Please know that the Community has your back if you need assistance.

So now we have a partial answer.  As per the moderator, Intuit will issue 1099k for credit card and debit card payments through Intuit invoice system but if your customer clicks to pay and pays directly via ach using routing and acct number even though there is a small Intuit processing fee, they (whoever is paying) needs to issue a 1099.  Intuit although still needs to define how to mark venmo, cash app and the like sort pymt types so those will not pick up for 1099 as 1099k should be issued by those entities.

My client's already send me 1099's for the amounts they paid me for the year, those amounts are already within my p&l. Now Intuit sends a 1099k to IRS and the income gets reported again? 

So, I already get 1099's from my clients reporting the income they paid me for the year. Now Intuit files a 1099k showing income that has already been accounted for and within my p&l, essentially duplicating income I already claimed and was reported to IRS. Anyone else having this issue? Also, my 1099k was not even close to correct and came in my personal name and SS # even though the online payments run through my business and TIN...

Thanks for joining this thread, @JC4274. Thanks for providing such information about a 1099-K form being filed with the IRS that causes your income to double. Let me share some details about how we generate a Form 1099-K.

Normally, you'll only get a Form 1099-K if the gross amount of aggregate payments is $600 or more. Then, you can download it in the Merchant Service Center by January 31st. QuickBooks Payments only files a copy of the 1099-K with the IRS in April of each year.

However, if you received a 1099-K and didn't open a QuickBooks Payments account or haven't processed card transactions, you may be the victim of identity theft. Please email us at 1099_risk@Intuit.com, as you may have been the victim of identity theft and have gotten a 1099-K in error. We will provide comprehensive instructions in our email response.

Moreover, I highly suggest contacting our Payment Support Team since the Community is a public forum. One of our experts has the necessary tools to check your account securely and perform a screen-sharing session to conduct further investigation into this behavior.

In case you need to download Form 1099-K, you can follow these steps:

1. Sign in to the Merchant Service Center.
2. From the Activity & Reports menu, select Download Form 1099-K.
3. Select Download.

You'll also want to visit this article to view a list of FAQs about Form 1099-K along with their answers: 

• Intuit Form 1099-K
• Tax Compliance for Credit Card Accounts.

Please come back and keep us posted on your progress in reporting this issue. I'm determined to ensure your QuickBooks account is always secure. Have a good day, and take care.

@JC4274 

Explore this app to find another reference

https://blue.mbsy.co/6tJhcz

How about the holiday gift card ($50) I gave to my contractors?

Hey there, @flypig. Thanks for joining this thread.

Are you asking if the Holiday gift card ($50) given to your contractors will be reported on 1099-K? If so, the answer to this will depend on how you process the payments. If payments are made via credit card, debit card, or third-party system, such as PayPal, will be reported by payment providers, like QuickBooks Payments if they meet or exceed the $600 threshold.

For additional reference, you can check the following resources below:
 

• Tax Compliance for Credit Card Accounts
• Understand which payments are excluded from a 1099-NEC and 1099-MISC
• Intuit Form 1099-K

I'd also suggest reaching out to your accountant for further advice on which tax forms this transaction should be reported. This way, we can ensure that you're filing the correct form.

Please let me know if you have further concerns about what transactions should be reported on the 1099-K. I'll be here to help. Have a good one.

From what I read on the IRS rules you do not 1099 for gift cards.

I am finding in contractor reports for 1099 that Intuit is picking up debit card payments even when db is in the reference area and debit card is in the  payment method.  Isn't Intuit responsible for issuing a 1099K for all debit card and credit card payments made via the Intuit invoice system.  Reading the IRS rules debit cards should also be included.  This may well be why some are getting both 1099's and 1099K.  What's happening?

I can share some information about 1099s, @Tena_Lewey.

According to the IRS, companies are required to fill out Form 1099-K and send copies to the IRS and to you if you received goods or services during the year from credit, debit or stored value cards such as gift cards (payment cards), payment apps or online marketplaces. You can find more information in this IRS article: Understanding your Form 1099-K.

For the tax year 2023, you will receive a Form 1099-K if your gross reportable payments exceed $20,000 and the number of transactions exceeds 200. You can download your Form 1099-K from the Merchant Service Center by January 31st. You can find more information in this article: How Intuit generates Form 1099-K. 

If you pay contractors in cash, check or direct deposit, you are required to prepare and file your Federal 1099s. Here's how you can create and file 1099s with QuickBooks Online. 

If you filed your 1099-MISC or 1099-NEC forms with the IRS, you may also need to file with your state. Check out this article to know which states require 1099s: File your state 1099 forms. 

Here's how to resolve missing contractors or wrong amounts on 1099s in case you need help adding a contractor or changing an amount when you create your 1099s. 

Please let me know if you need any more information about 1099s. The Community is always here to answer your questions. Have a wonderful day!