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Plink
Level 2

NEC vs. MISC Reports for Proper 1099 Reporting

Why are the NEC and MISC reports not segregating the NEC and the MISC?  Please see attached.  My NEC report is combining the mapped out NEC with my mapped out MISC??  How do I print reports showing them as separate for proper filing?  One would think that is what Quickbooks DT is going to do under those two new tabs for printing 1099's but that's not happening.  What am I doing wrong?    THANKS

3 Comments 3
Rasa-LilaM
QuickBooks Team

NEC vs. MISC Reports for Proper 1099 Reporting

Thanks for reaching out to the Community about your 1099 concern, Plink.


I appreciate for sharing with us the screenshot. This helps us determine what causes the issue.


When processing the 1099-NEC and MISC, let’s map the transactions to the correct accounts and boxes. This is to ensure they’re properly reported to the correct tax form.


For example, Nonemployee compensation is reported on Box 1 on the 1099-NEC. I’ve added some of the transactions mapped to the mentioned box.

 

  • Fees, commissions, prizes, and awards
  • Services performed as a non-employee, other forms of compensation for services performed for your trade or business by an individual (not your worker).
  • Expenses incurred for the use of an entertainment facility that you treat as compensation to a nonemployee.
  • Federal executive agencies that make payments to vendors for services, including payments to corporations.

 

While on the 1099-MISC, select Box 1 for all types of rent transactions. Make sure the amount is $600 or more. To proceed with the troubleshooting steps, follow the recommendations in this article: Understanding payment categories for the 1099-MISC and 1099-NEC.


Let me also share the following guide for additional resources. It outlines the complete steps on how to configure your chart of accounts for the 1099-MISC and 1099-NEC filing: How to modify the accounts.


Please let me know if I can be of further assistance. I’ll be happy to lend a helping hand. Have a good one.

Plink
Level 2

NEC vs. MISC Reports for Proper 1099 Reporting

Hmmm, I'm beginning to think I'm not articulating the issue properly. 

Keep in mind this is for the SAME VENDOR;

1)  I am wondering WHY when I print my vendor 1099 summary for MISC & NEC the dollars do not segregate NEC vs MISC?  It totals both although mapped properly as they should be now.

      because of this

2)  when I attempt to report my NEC, it is INCLUDING my MISC (Rent)? See attachment.

What am I doing wrong?  I'm pretty sure I've mapped correctly, is this a law in the system?  Am I missing a step somewhere? Do I need to "omit" to generate a 2nd report for MISC?  I am really at a loss here, I can't be the only one having this issue?

KlentB
QuickBooks Team

NEC vs. MISC Reports for Proper 1099 Reporting

I can shed a light on that, Plink. 

 

The rent payment is showing in your Form 1099-NEC report because you're only using one set of accounts in paying your vendors. To segregate the payments, you'll have to create a new list of accounts to report the amounts to the new 1099-NEC tax form. I'll show you how:

 

  1. Choose Lists from the top menu bar, then go to Chart of Accounts.
  2. Click the Account drop-down menu, then select New to create a new account.
  3. For the account type, select Expense, Other Expense, or COGS, then click Continue.
  4. Enter the account name and other details such as description, note, and tax-line mapping.
  5. Click Save & Close.
  6. Repeat this process for each new account to be reported on the tax forms.

Once done, you can either create a journal entry or edit existing payments to move amounts to the newly created 1099-MISC/NEC accounts. Follow these steps to add a journal entry:
 

  1. Select Company from the top menu bar, choose Make General Journal Entries.
  2. Fill out the necessary fields, then make sure that your debits equal your credits.
  3. Select Save & Close or Save & New.
  4. Repeat this process for each payment you need to move.

Here's how to edit existing vendor payments:
 

  1. Select Vendors from the top menu bar, then choose Vendor Center.
  2. Pick a vendor, then locate the transactions you need to modify.
  3. Double-click the payment to open it.
  4. Change the expense account, then click Save & Close.
  5. Select Yes to confirm the changes.
  6. Repeat this process for each payment you need to edit.

Then, run your 1099 Summary or 1099 Detail report again to check the changes.

 

To learn more about this process, you can read this guide: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing. When you're all set up and ready, feel free to read this article to be guided in filing your 1099s with QuickBooks Desktop: Create and file 1099s.

 

Do let me know if you need more help in accomplishing your other task by dropping a comment below. I'll be right here to continue assisting.

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