1099 Detail Report

I appreciate what you've done on your end, Pinnaclemei. Let me help you with the missing vendor in your report.

First off, if a 1099 contractor is not listed when you begin creating your 1099 forms, it could be because they are either inactive or not marked as eligible for a 1099. Here’s how to check their status and the types of 1099 reports you can generate.

Here's how:

1. Go to Reports, then select Vendors & Payables.
2. Select 1099 Summary.
3. In the 1099 options dropdown menu, select All vendors.
4. If you see the missing Vendor, make them a 1099 Vendor. 
   • Go to the Vendors menu, and select Vendor Center.
   • Double-click the vendor's name.
   • Select the Tax Settings tab.
   • Select Vendor eligible for 1099 box to place a checkmark.
   • In the Vendor Tax ID field, enter the vendor’s tax ID.
   • If there is a checkmark next to Vendor is Inactive, remove it.
   • Select OK.

Then let's ensure your payments to this contractor meet the threshold. To do so, follow the steps below:

1. Go to Reports, then select Vendors & Payables.
2. Select 1099 Summary.
3. In the 1099 Options dropdown menu, select Ignore thresholds.
4. If you see the Vendor, they have not met the threshold.
5. If this is a 1099 Vendor using 1099 Accounts, you need to enter more transactions or change the thresholds.
   • Go to Edit, and select Preferences.
   • On the Preferences window, select Tax:1099 from the left pane, then select the Company Preferences tab.
   • Select the link and click here next to If you want to map your accounts to boxes on form 1099-MISC.
   • QuickBooks 1099 wizard page will come up. In the Map Accounts step, select the Show IRS 1099-MISC filing thresholds link.
   • In the 1099-MISC IRS Thresholds window, double-click the Thresholds column for the appropriate 1099 Box.
   • NOTE: The screen will display; Your settings do not match the current IRS thresholds message in red. Select Reset to IRS Thresholds if you want to follow the IRS-mandated threshold and add more transactions instead.
   • Select Save & Close.

Lastly, ensure that you pay contractors from the correct expense account.

Here's how: 

1. Go to Reports, then select Vendors & Payables.
2. Select 1099 Summary.
3. In the 1099 options dropdown menu, select All allowed accounts.
4. If you find the missing vendor, find the Account and make it a 1099 Account.
   • Double-click the amount in the Total column for your Vendor.
   • In the 1099 Detail report make note of the Accounts in the Account column.
5. To show these transactions on 1099 reports and forms
   • Go to Edit, and select Preferences.
   • In the Preferences window, select Tax:1099 from the left pane, then select the Company Preferences tab.
   • Select the link next to If you want to map your accounts to boxes on form 1099-NEC or 1099-MISC.
   • QuickBooks 1099 wizard page will come up. You'll be directed to Map Accounts. This window displays all accounts used for payments to 1099 vendors. From the Apply payments to this 1099 box drop-down, choose one of the 1099 boxes.
6. Once done, close the 1099 Detail report.
7. Select the second 1099 Options drop-down, then select Only 1099 accounts.

You can visit this article for more detailed information: Troubleshoot missing contractors or wrong amounts on 1099s.

Additionally, you might want to check out this article and learn how to make corrections to 1099-NEC or 1099-MISC forms after you e-filed them: Correct or change 1099s in QuickBooks.

If you need additional assistance managing your vendors or any QuickBooks-related concerns, please feel free to comment. I'd be glad to assist. Have a good one.

This was a terrific walk-through however, it did not solve my report problem.

I took your steps to make sure that vendor #2 is marked as a 1099 vendor and she is, but she still doesn't show up on the report even with no threshold.

I was hopeful that making all the accounts involved in their transactions 1099 accounts would work as you suggested, but in the wizard mapping section (Edits-Preferences) the only account I could change was the Owners Contribution account.  I did, and ran the report again and nothing changed on the report.

As well, in the wizard mapping section, the Checking Account, Savings Account and Petty Cash do not show up as an option to change.  Is there another place to mark an account as a 1099 account?

I’ll provide some detailed information on how to process account movements for 1099 forms, pinnaclemei.

It's great to see that you have followed my colleague's earlier recommendation regarding the mapping of accounts. This step is crucial in ensuring your financial records are correctly aligned for tax reporting.

If that's the only account you can change, then that means the rest of the account has already been mapped to either 1099 MISC or NEC. To verify this, we can check the correct mapping of each form to ensure the correct boxes are mapped for each account.

When it comes to mapping your accounts, you have two options:

You can either display all accounts available in your chart of accounts or narrow it down to only those accounts that are relevant for 1099 transactions involving your vendors. This tailored approach helps streamline the reporting process.

Here's how:

1. Go to Edit then select Preferences.
2. Choose Tax 1099, and click  Company Preferences.
3. Choose either of these forms you want to map:

• If you want to map your accounts to boxes on Form 1099-NEC.
• If you want to map your accounts to boxes on Form 1099-MISC.

It’s important to remember that during the mapping process, only accounts categorized as Expense, Income, Liability, Other/fixed asset, and Equity are eligible for reporting on 1099 forms. To show all accounts, we can click the All accounts button to display a comprehensive view of all your financial accounts in one place for easy monitoring.

Additionally, payments made via CC or third-party system will be automatically excluded on the 1099 form even though you've already reached the threshold with the correct mapping.

Furthermore, many payments are classified as excluded from 1099 reporting based on the account type used. For instance, payments made via credit cards and certain terms often trigger the exclusion. Some can be identified by key terms such as "Debit," "Debit card," "DBT," "DBT card," "DCard," "Debit CD," "Visa," "Mastercard," "MC," "MCard," "Chase," "Discover," "Diners," and "PayPal."

Any payment made using a credit card, debit card, or third-party platform like PayPal, Venmo, etc is excluded from 1099. These transactions can be excluded by using the above keyword suggestions. By putting these codes or terms, it's simply telling QuickBooks that this isn't a check or a direct money transfer that's being paid with a card or some sort. In this case, QuickBooks is going to exclude them.

For further assistance, I highly recommend checking out these informative articles that dive deeper into the subjects of account modification for both the 1099-MISC and 1099-NEC filings, as well as the overall creation and filing of 1099 forms.

• How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing
• Create and file 1099s

If you have any questions or require additional clarification, please do not hesitate to reach out. I am here to help you navigate these processes and ensure the efficient management of your business’s financial operations.

Sadly, I'm still a bit discouraged.  Why doesn't my vendor #2 show up in the report if I've eliminated the minimum threshold for reporting and her box is checked as eligible for a 1099.

Also, if bank accounts and petty cash aren't in the allowed mapping, how do the reimbursements show up in the 1099 report to offset the expenses to my business so that the 1099 amounts are accurately reflected?

Balancing expenses and reimbursement for accurate 1099 reporting can get tricky, but I'll guide you through how to fix this in QuickBooks Desktop (QBDT) to ensure everything is accounted for properly.

In QBDT, the 1099 Detail Report pulls data based on:

1. Account Mapping: The accounts used in the transactions must be mapped to 1099 boxes.
2. Transaction Type: Only expenses recorded as checks, bills, or expenses (not journal entries) are considered.
3. Payment Method: Payments must be made via cash, check, or direct deposit; electronic methods like iWallet may need manual adjustments to be included.

For Vendor #2, using journal entries for the expense and reimbursement caused it to be excluded. Journal entries do not link directly to 1099-mapped accounts, which explains the discrepancy.

To fix your 1099 report and reimbursement, please follow the steps outlined below.

Step 1: Adjust Vendot #2's Transactions to include them in the report by replacing the journal entry used to record the expense:

1. Go to Banking, then choose Write Checks.
2. Record the expense under a mapped account, such as "Customer COGS" or "Subcontractor Expenses"
3. Create a deposit in the same mapped account as the expense to offset the amount and record the reimbursement.

Step 2: Review and Map 1099 Accounts:

1. Go to Edit, then select Preferences.
2. Choose Tax: 1099, then navigate to Company Preferences.
3. Click Map Accounts, then ensure that the accounts used for vendor #1, #2, and #3 expenses are mapped to the correct 1099 boxes.

Step 3: Correct Reimbursement for Vendor #1 and #3. Since the reimbursements don't appear as credits on the 1099 report:

1. Open the original expense transactions (bill or check).
2. Use the Add/Edit Detail option to include a note about the reimbursement.
3. Match the reimbursement deposit to the same mapped account used for the expense.

This will offset the amounts directly in the mapped account without needing a journal entry.

Transactions tied to petty cash or personal accounts are excluded from 1099 mapping by default. To reflect these reimbursements:

1. Reclassify the petty cash and personal account credits as deposits into a mapped expense account.
2. Ensure the business-related entries flow through properly mapped accounts for accurate 1099 reporting.

After making these adjustments, I recommend running the 1099 Detail Report again to confirm accuracy. Additionally, consider using a QuickBooks Desktop ProAdvisor for personalized guidance on your 1099 filings.

I've added some best practices for future transactions:

• Avoid journal entries for vendor payments or reimbursements, as these don't link to 1099 accounts.
• Always use mapped accounts for vendor expenses and record reimbursements as deposits tied to the same account.
• Regularly review your 1099 settings and vendor eligibility to prevent mismatches.

Moreover, you might want to check out these articles to learn how to file and make 1099 corrections:

• Create and file 1099s with QuickBooks Desktop
• Correct or change 1099s in QuickBooks

Let me know how these adjustments work for your 1099 reporting. If you have additional questions about specific transactions or setup, I'm here to help. Ensuring your vendors and reports align is important, and I'll assist you every step of the way.

Thank you for this.  I got as far as step 1, #3.  The only way I see to create a deposit is to do that under "receive payments"...which makes her a Customer.  Is that what you intend?    

Thank you very much.  All 3 vendors now show up on the 1099 report for my company expense.  As this issue involves only these 3 vendors for 2024, I'll just manually exclude that expense from their 1099 reporting.