Journal entry problems with 1099s

rtconsulting · ‎January 08, 2022

I sold a property this past year that had a private loan against it. The escrow company paid both the principal and the balloon interest payment through escrow. I used the escrow company's settlement statement to enter a GJE into QB Desktop. I used one account for the liability repayment, and another account "Interest expense" for the interest. I also assigned the lender's name to the interest expense line in the GJE. However, the interest expense from the GJE is not showing up in my 1099s.

I've verified that the Interest Expense account that was used in the GJE is also mapped to the vendor for the 1099 ( per https://quickbooks.intuit.com/learn-support/en-us/payments/common-causes-for-incorrect-amounts-on-10...). However, some have said that 1099's only capture cash and check payments made to vendors and therefore GJEs won't show up in 1099s (contrary to the above link)..

How can I solve this problem?

rtconsulting · ‎January 12, 2022

Solved -

The issue was I did not proceed any farther in the wizard past "View Included Payments". Since the report didn't show the interest payments, I assumed it would not be included on the 1099. However, upon continuing in the wizard to the next screen, I saw that my journal entries were indeed included on the 1099s.

View solution in original post

ShiellaGraceA · ‎January 08, 2022

Thanks for reaching out to us, @rtconsulting.

I'll make sure you're able to file your 1099 forms. To verify, are you trying to file both 1099-MISC and 1099-NEC? If so, you'll have to modify your Chart of Accounts. Create a new expense account for all the accounts that will be reported on the 1099-NEC or 1099-MISC. A single account can only be used for each form.

Refer to this article for the steps: Add, edit, or delete accounts in QuickBooks Desktop.

After setting up an account, proceed with creating a journal entry to move the amounts from one account to another. For details about the steps, check out this article: Modify your chart of accounts for your 1099-MISC and 1099-NEC filing.

Here's a link that'll help you learn about the different 1099 payment categories.

Let me know how it goes as I wanted to ensure this is resolved for you. Take care and have a great day ahead.

rtconsulting · ‎January 08, 2022

No, I don't have any 1099 MISC forms, only 1099 NEC and even if I create different accounts for each type of form, it doesn't help.

rtconsulting · ‎January 12, 2022

Solved -

The issue was I did not proceed any farther in the wizard past "View Included Payments". Since the report didn't show the interest payments, I assumed it would not be included on the 1099. However, upon continuing in the wizard to the next screen, I saw that my journal entries were indeed included on the 1099s.

AlcaeusF · ‎January 23, 2022

Hello @rtconsulting,

I have reviewed the solution you’ve shared and it's correct and accurate. Thank you for sharing your inputs to help address the issue.

We love to see members supporting one another! Have a great day.

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Journal entry problems with 1099s