1099-NEC and attorney fees

It's nice to see you here, @sra411,

I want to make sure you're able to post the attorney fees to your 1099 report.

As per the IRS instructions, gross proceeds paid to an attorney are reported in Box 10 of the 1099-MISC. However, there are exceptions where legal fees must be reported in the 1099-NEC form.

I'd recommend checking these links first to learn more about the reporting process:

• Understanding payment categories for the 1099-MISC and 1099-NEC
• Instructions for Forms 1099-MISC and 1099-NEC

To ensure the information is showing correctly, categorize the payments to the correct boxes. Follow the steps in this article to get the accurate data when printing 1099's: Create and file 1099s with QuickBooks Desktop

Kindly update me on how it goes or provide a screenshot of the problem. I'll be right here if you need anything else with the 1099 form.

RE: "Before that, I'd like to let you know that the 1099-NEC is not yet available in QuickBooks Desktop."

Your release notes say it is.

"QuickBooks Desktop now supports 1099-NEC and 1099-MISC print and eFiling."

https://quickbooks.intuit.com/learn-support/en-us/update-products/release-notes-for-quickbooks-deskt...

I figured out the issue.  One report defaulted to 2020 year but the rest of the reports were 2019 including the wizard (which I can't change).  The 1099s that the wizard will print are correct.  Not sure about the layout yet.  My wizard does show 2 different 1099 options so we'll see what happens when I receive forms and need to print.  Hopefully all updates will be ready before the end of the year.  Thanks.

Thanks for the update @sra411!

Let me know if you need anything else or have any other questions when you print the forms or any other time. I'' be here.

Have a great day!

I am using Quickbooks Online and I can't get the attorney fees to be put on a 1099Misc form which is where it belongs

I appreciate your time posting your concern here, @issiemac.

Let's ensure that the amount of the attorney fees are $600 or higher. This way, it will display on box 10 of your 1099 Misc form. 

Please also consider checking out this link to guide you more 1099 forms: 2020 Instructions for Forms 1099-MISC and 1099-NEC.

I've also added this article to guide you to file 1099s in QuickBooks Online: Create and file 1099s using QuickBooks Online.

Please leave a message by clicking the Reply button below if you have related concerns. I'll be happy to help you. Keep safe always.

I'm having similar problem.  Using the online QB version to prepare the 1099s. One for an attorney is not showing up at all (in the above or below threshold menu options).

The attorney fees are $600. I have verified they are set up correctly, tax ID is in, payments posted to the correct account, check box to be 1099.  Now, the attorney is an LLC - S Corp, but according to IRS regs, seems the fees still need to be reported in box 1 of 1099 NEC.  Why is QB not picking up this vendor for me and how do we fix? 

Hi Kristo19,

Thanks for making sure you have the right account, setup, etc before posting here. I also assumed that the account/category on the attorney's payment transaction is mapped in box 1, as you wanted it to reflect in it.

One more thing, you can add the attorney's profile to the list in Step 4, as shown below.

On the other hand, if you paid the attorney electronically, such as by credit card, debit card, gift card, or PayPal payments, QuickBooks Online will automatically exclude these for you. The payment companies will report them so you don't have to.

I can see that Rubielyn_J has already shared the references for 1099s in QBO. You may refer to them if you need additional information about the form.  

Please don't hesitate to go back to this thread if you have other questions mind.

Thanks!  the issue was in Step 2 - the check boxes - one of the things I didn't double check.  Adjusted that and all is good now. 

Hi there, @Kristo19.

I'm happy to hear that the steps provided by my colleague JessT have helped you resolve your concerns with Federal 1099.

Please know that our doors are always open here on the Community page. If you have any other questions about QuickBooks or forms, let me know by adding a comment below. I'll keep an eye to help.

Moreover, I've also added these links for your resources about processing year-end forms and taxes in QuickBooks:

• Year-end checklist for QuickBooks Online Payroll
• Year-end checklist for QuickBooks Online Payroll Enhanced
• Common year-end questions and answers

Keep safe and cheers for more success!😊

I have a $350 payment to an attorney that should be included on Form 1099 NEC per IRS guidelines. How do I get QBO to pick up that vendor? It shows up on the 1099 contractors below threshold but I don't see how to override and include. Thank you.

I am using QBO. I have a $375 payment to an attorney. Per IRS guidelines, all payments to attorneys have to be included regardless of the $600 threshold. The payment shows up on the "1099 contractors below threshold" report, but I don't see how to override this and include the payment on a 1099 NEC. Thank you.

Hi @maryg2,

A direct option to print a 1099 form in QuickBooks Online (QBO) for contractors that don't meet the threshold is unavailable. 

I'll share with you a workaround you can use for this situation. You can run a report and fill-up the form by hand. 

Here's how:

1. Go to the Reports tab.
2. Search for the 1099 Transaction Detail Report report.
3. Set the date range to the Last Calendar Year.
4. Hit Run report.

In case you encounter any other issues with your 1099s in QBO, check out this article: Troubleshoot common 1099 issues. 

Direct other questions you may have about the 1099 form in the comments below. I'll get back to you as soon as I can.