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neve-maziquebian
Level 1

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

 
Solved
Best answer February 11, 2020

Best Answers
MaryLandT
Moderator

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Hi there, neve-maziquebian,

 

In QuickBooks Online, you don't need to file 1099 for vendor payments made via third-party money transfer service. Venmo, Cashapp, and Zelle can file 1099s for you. I recommend contacting them so they can help prepare these forms.

 

You can also refer to this article for more details: IRS Reporting Requirements for Third-party Vendor Payments on 1099-K/1099-MISC

 

Let me know if you have follow-up questions, and I'm always around to help you out.

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12 Comments 12
MaryLandT
Moderator

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Hi there, neve-maziquebian,

 

In QuickBooks Online, you don't need to file 1099 for vendor payments made via third-party money transfer service. Venmo, Cashapp, and Zelle can file 1099s for you. I recommend contacting them so they can help prepare these forms.

 

You can also refer to this article for more details: IRS Reporting Requirements for Third-party Vendor Payments on 1099-K/1099-MISC

 

Let me know if you have follow-up questions, and I'm always around to help you out.

BethPinCa
Level 1

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

When you pay a vendor with e-payments, Quickbooks Online still adds those payments to the 1009. Even if you change the payment method to Venmo. Should I change it to Credit Card?

Mich_S
QuickBooks Team

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Good day, @BethPinCa.

 

Certain contractor payments are required by the IRS to be reported on the 1099-K form rather than the 1099-MISC and 1099-NEC forms. Third-party payment processors, such as Venmo and credit card processors, are required to file.

 

If you have any queries about payments that are subject to the third-party payment processing to be excluded, you can visit the IRS website or contact them directly. Use this article on what payments are excluded from a 1099-NEC and 1099-MISC for more information.

 

To know more on how you can handle 1099s in QBO, check this out:

 

Keep in touch for more questions regarding 1099 or QuickBooks. We're always here to back you up. Have a great rest of the week!

BethPinCa
Level 1

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Thank you. I understand that 3rd parties like Venmo are expected to report those payments in a 1099k. 

 

My question is...

In Quickbooks online, I put the payment method as Venmo, yet when I run my 1099 NEC report those payments are still coming up. But they shouldn't. I am not supposed to create the 1099 for them since Venmo will do that. 

How do I make Quickbooks online, remove those payments from the total for that vendor. 

 

Example - a gal in our office does marketing sometimes for me. Sometimes I write her a check, sometimes I give her cash, sometimes I Venmo her.

 

I want the check and cash payments to be added to the 1099, but not the venmo payments. Therefore since all her payments are different, I don't want to remove her from being 1099 all together like some work arounds I've seen suggested. 

 

Should I use the "Payment Method" as Credit Card? Would that help Quickbooks Online to eliminate those payments? (I know it would work in QB desktop.) 

BethPinCa
Level 1

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Thank you. I understand that 3rd parties like Venmo are expected to report those payments in a 1099k. 

 

My question is...

In Quickbooks online, I put the payment method as Venmo, yet when I run my 1099 NEC report those payments are still coming up. But they shouldn't. I am not supposed to create the 1099 for them since Venmo will do that. 

How do I make Quickbooks online, remove those payments from the total for that vendor. 

 

Example - a gal in our office does marketing sometimes for me. Sometimes I write her a check, sometimes I give her cash, sometimes I Venmo her.

 

I want the check and cash payments to be added to the 1099, but not the venmo payments. Therefore since all her payments are different, I don't want to remove her from being 1099 all together like some work arounds I've seen suggested. 

 

Should I use the "Payment Method" as Credit Card? Would that help Quickbooks Online to eliminate those payments? (I know it would work in QB desktop.) 

BethPinCa
Level 1

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Thank you. I understand that 3rd parties like Venmo are expected to report those payments in a 1099k. 

 

My question is...

In Quickbooks online, I put the payment method as Venmo, yet when I run my 1099 NEC report those payments are still coming up. But they shouldn't. I am not supposed to create the 1099 for them since Venmo will do that. 

How do I make Quickbooks online, remove those payments from the total for that vendor. 

 

Example - a gal in our office does marketing sometimes for me. Sometimes I write her a check, sometimes I give her cash, sometimes I Venmo her.

 

I want the check and cash payments to be added to the 1099, but not the venmo payments. Therefore since all her payments are different, I don't want to remove her from being 1099 all together like some work arounds I've seen suggested. 

 

Should I use the "Payment Method" as Credit Card? Would that help Quickbooks Online to eliminate those payments? (I know it would work in QB desktop.) 

TirzahC
QuickBooks Team

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Let me clarify things out. BethPinCa.

 

Upon setting up a vendor/contractor,  let’s make sure to select the affected accounts are correct. You can also, delete and recreate. If the same issue, let's do some troubleshooting steps. Unexpected issues this mostly are affected by the large data in the cache. This is because the data on a regular browser will overwrite itself and will remove history unless done manually.

 

While the incognito mode will not save any history, it is a great place to identify issues in the browser. Use these keyboard shortcuts to launch a new private window:

 

  • Google Chrome: press Ctrl Shift N  
  • Mozilla Firefox: press Ctrl Shift P
  • Safari: press Command Shift N

Clearing the cache can also help resolve browser issues in QBO.

 

For more tips about running and customizing 1099 reports in QBO, I recommend opening these links:

 

 

Also, you may open these articles for additional resources when preparing your Federal 1099s:

 

Please let me know how else I can help you with your 1099 reports. I'm always here to help. Keep safe always!

Tena_Lewey
Level 5

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Just adding to this a few years after.  It's currently the end of 2022.  If you set up a payment method for say, Cash App, this method is still picked up by QuickBooks Online as needing you to file the 1099, which you should not do.  QuickBooks Online needs to fix these issues and instruct users how to detail those payment methods so at year end it is not a multi detail fight to distinguish which payments to 1099 and which were paid via a 3rd party who is responsible for issuing a 1099K.  While using credit card would do so that is not correct and should not have to be.

 

Also, as a side note, I find it interesting that Zelle claims they are exempt from issuing 1099k because of the nature of their platform.

 

IRS also has changed the 600 1099k from 2022 to end of 2023.

 

L_Showers
Level 1

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Hi there, I am newer to Quickbooks, but am having this same issue. Tena_Lewey, can you please explain your work around to me to have Quickbooks exclude Venmo transactions from the 1099s? I tried contacting Quickbooks, but I don’t think the solution worked. 

Thank you in advance

marshall54
Level 1

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Can you verify if Zelle does report the 1099 amounts. Most of my vendors paid by zelle say they haven't received 1099s

Tena_Lewey
Level 5

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

Researching this info for Zelle, it seems Zelle is not required to send 1099-k as they are a sort of direct pay system it seems.  How I would handle these varied issues when entering in QB to make it easier at year end to distinguish until QBO comes up with a resolution, in the reference area of the register (where you would add a check# I would put Zelle, or CashAp, Venmo, PayPal.  All of these others, as I understand it, will issue 1099-k but Zelle apparently will not.  Search it and I believe you will find them stating such as well.  For 2023, it appears the limit for 1099K is still up to like 5k I believe although for 2024 it should all be the 600 limit to receive 1099k.

 

 

Tena_Lewey
Level 5

If I paid vendors in 2019 via Venmo, Cashapp, and Zelle (3rd party money transfer service through Boeing Employees Credit Union), do I need to file 1099s?

As of February 2024 QB does not have an easy fix that I have heard about that will resolve these issues. The reports will include all of these other than items paid from a Credit Card that is correctly set up and entered,  so you will need to do your own research and due diligence within your books to ensure that you do not 1099 for CashAp, Venmo, PayPal but that you do 1099 for Zelle payments as it appears Zelle will not issue 1099k's because of the type of network they are, which leaves you responsible for doing so.

I believe adding payment types for these will help and that adding the word Zelle, Venmo, CashAp, PayPal where the check# / reference # would normally go will help you when you are doing your own due diligence within your books at year end.

Hope that helps.

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