Prep of 1099s, I am found that QB isn't recognizing pmts to contractors that were made via credit card. How can I manage the system to recognize these pmts for 1099s?

Hi, Tina Y.

QuickBooks won’t display payments that you made electronically to contractors since these are reported for you by the credit card company and the bank.

When preparing your 1099s you have the option to select the box for the types of payments you made and the expense accounts you use for these payments. You'll want to modify the transaction you created posted to the account as a way to override the amounts posted on 1099-NEC. 

You can review which account you select for 1099-NEC by following these steps:

1. Go to the Payroll or Workers menu.
2. Select Contractors.
3. Click Prepare 1099s and then Continue your 1099s.
4. Under step 2, in the Most common payment types section, select Non-employee compensation to see which account to use or you selected. 
5. Do the same thing under Federal Tax. 
6. Then, exit on the screen and go to Accounting > Chart of Accounts.
7. Delete and review payments if necessary.  
   
   

Go back to steps 1 to 5 to reselect the account and continue preparing your 1099-NEC. Here are links that will help you in identifying payment categories for 1099-MISC and 1099-NEC and how to prepare them.

You can get more details about this in the following article: Understand which payments are excluded from a 1099-NEC and 1099-MISC. You'll find other links on what certain payments should be reported in the 1099-K form.

Additionally, you go through this article: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing. This will provide you with more details about the 1099-NEC filing as well as the steps on how to move the payments to the new account.

Don't hesitate to reach out to us again if you have follow-up questions. As always, we're always here to help. 

Thanks for this response; I will have to see if I can mess wit quickbooks to fix this.  I already realized the part about how QB was eliminating these transactions and thought that I would "fool" the system by trying to change the transactions themselves, but then of course, I ran into issues with changing transactions that have already been reconciled and making a whole bigger kind of mess in my books just to try to get around this issue in QB.

It's rather disappointing that I have to do this simply because of what you mentioned.  As I said, I will try to monkey with it, but it shouldn't be this messy to try to recognize these types of payments that are legitimately 1099 items.  I hope QB will consider changing and fixing this issue.

Thanks again for the speedy reply.