1099 Reports show Vendors marked NOT eligible

kyleknapp · ‎January 09, 2019

I don't know why I haven't posted this question before, as it's been bugging me for at least 10 years.

When I run a 1099 Summary or Detail report, it seems to selectively ignore the "Only 1099 Vendors" option. It doesn't include every vendor over the threshold, but quite a few of them. To make it print correctly I have to customize the report to select only the names that I know belong there.

I figured it was a bug in the program, and every year I'm surprised that it hasn't been fixed. Any ideas?

qbteachmt · ‎January 10, 2019

"I DID use the wizard, but it doesn't offer a report."

Step 5.

"I didn't see any option to Reset to Thresholds."

Step 3.

"I ticked the Vendors that are eligible (ie, ones that should get a 1099 IF they meet the threshold). Then clicked on through the wizard until I got to the print 1099s screen."

Yes, every year some program update whacks the 1099 settings and the Thresholds, too. Make sure to use the link in the wizard to Set the Thresholds to the IRS defaults, and yes, reviewing the names is what you needed to do. To Easily update, go to Lists menu > Add/Edit Multiple, Vendors, Customize the columns, bring what you need into your view (1099 Y/N and SSN/EIN field) and scan and update. This is another reason it helps to use Vendor Type; you can use Type = Subcontractor, for the 1099-Reportable names, and that doesn't seem to get affected. Then, in that Add/Edit Multiple, you can show only the Vendor Type that matters for this task, and you also can use Reports menu > List Reports, Vendor Phone List. Customize it to display the info you want, retitle it Vendor Year End Info and Memorize it to have it always available.

View solution in original post

Charies_M · ‎January 09, 2019

Thanks for reaching us out today, kyleknapp.

Let's get this conversion issue taken care of.

I've replicated this in my QuickBooks account to be sure, but it doesn't give me the same result as you have. If your filter for Name is set to All names or no filter at all, whether you choose Only 1099 Vendors as your 1099 option, it would still show all the vendors.

This issue can be resolved by running the Verifying and Rebuild tool in QuickBooks Desktop. This will help us identify the common data issues within your company file.

Before doing this, let's secure a backup of your company file before performing the troubleshooting steps. Once done, you can now start to verify and rebuild your QuickBooks Desktop.

To Verify:

Click File at the top menu.
Go to Utilities.
Select Verify.

To Rebuild:

Click File at the top menu.
Go to Utilities.
Select Rebuild.

Here's an article that'll serve as your step by step guide in resolving common data damage on your company file: Verify and Rebuild Data in QuickBooks Desktop.

Keep me posted on how it goes. I'll be around if you need more help while working with your 1099 reports. It's my pleasure to assist you.

kyleknapp · ‎January 10, 2019

WARNING! Just after I started this thread I got a call from QB Tech support. Turned out to be a scam. Very convincing. A little scary.

I posted details in a comment in this thread

kyleknapp · ‎January 10, 2019

I've done that before, but I'll try again.
I think I'll also archive old data - haven't done that in many years.

qbteachmt · ‎January 10, 2019

It has nothing to do with Archiving.

You also likely don't need a rebuild, but that is fine to do.

You need to go through the Wizard and click to Reset to the IRS thresholds. The program updates whack your settings. Also, you might need to review if the vendor names that Are subject to this reporting, as still marked as such. The program updates whack your settings. Confirm the accounts that are Mapped. The program updates whack your settings.

The settings that control the reports are part of the Wizard, so do that first. If you find settings for Subject TO, changed, I prefer to use Lists menu > Add/Edit Multiple, to update or confirm Vendor Info in one screen.

And you need to pay only by check and cash, for these to be reportable on the 1099-Misc. Please see my attachment.

Just follow the analysis steps:

Did you mark someone as Reportable?

Were they paid in an Account that is Mapped as reportable? Examples: Box 1 = your Rent Expense needs to be linked. Box 7 = Contract Labor is linked, but not Materials expense.

Then the program evaluates if that Name was paid for those Account Reasons, to the reporting level per that box (they vary), and by the Payment Method that is reportable (check and cash).

If all tests are met, this is reported.

kyleknapp · ‎January 10, 2019

I tried condensing data, archiving transactions prior to fiscal year end 2015. It is my understanding that Verification and Rebuilding are automatically done in the condensing process, correct me if I'm wrong.

It ran for about an hour, then crashed. I had to restore from backup.

Now I'm running Verify. If that works I'll do Rebuild next, and THEN try to Condense.

kyleknapp · ‎January 10, 2019

I DID use the wizard, but it doesn't offer a report. I didn't see any option to Reset to Thresholds. I ticked the Vendors that are eligible (ie, ones that should get a 1099 IF they meet the threshold). Then clicked on through the wizard until I got to the print 1099s screen.

Then I went to reports to produce a 1099 report, but it still shows Vendors that were not ticked in the wizard (I also opened their vendor profiles, to insure Eligible for 1099 was also not ticked there).

BTW, I just ran Verify Data - it crashed before completing.
Now I'm running Rebuild.

kyleknapp · ‎January 10, 2019

Verify crashed.
Rebuild also crashed.
I should probably move this part of the thread to a different topic, eh?

qbteachmt · ‎January 10, 2019

I would not introduce a New Task into this. Set aside Condense, and get on with 1099 reporting and preparation. Don't compound the issues.

qbteachmt · ‎January 10, 2019

"I DID use the wizard, but it doesn't offer a report."

Step 5.

"I didn't see any option to Reset to Thresholds."

Step 3.

"I ticked the Vendors that are eligible (ie, ones that should get a 1099 IF they meet the threshold). Then clicked on through the wizard until I got to the print 1099s screen."

Yes, every year some program update whacks the 1099 settings and the Thresholds, too. Make sure to use the link in the wizard to Set the Thresholds to the IRS defaults, and yes, reviewing the names is what you needed to do. To Easily update, go to Lists menu > Add/Edit Multiple, Vendors, Customize the columns, bring what you need into your view (1099 Y/N and SSN/EIN field) and scan and update. This is another reason it helps to use Vendor Type; you can use Type = Subcontractor, for the 1099-Reportable names, and that doesn't seem to get affected. Then, in that Add/Edit Multiple, you can show only the Vendor Type that matters for this task, and you also can use Reports menu > List Reports, Vendor Phone List. Customize it to display the info you want, retitle it Vendor Year End Info and Memorize it to have it always available.

qbteachmt · ‎January 10, 2019

Step 3 image attached.

kyleknapp · ‎January 10, 2019

Thank you! I had not noticed the add/edit multiple feature before. And sure enough many vendors I had unchecked in the Wizard showed up as checked here. Once I unchecked them here, the report generated correctly.

Much easier than the workaround I've been using for years. (Still a workaround though...)

Anyway, thank you!

lroth · ‎January 22, 2020

Hi Folks! Well here we are in January of 2020, and I am having the same problem. I use QB Online and when I click the Prepare 1099s button, the list that comes up does not contain all vendors who made $600 or more in 2019 (for whom I selected the "Track payments for 1099" button). I'm not seeing the Wizard that you all are referring to - is that in QB Desktop?

lroth · ‎January 22, 2020

Just saw that this thread is tagged for QB Desktop, please disregard.

IamjuViel · ‎January 22, 2020

It's great to have you here, @lroth.

The 1099 Wizard is for QuickBooks Desktop. Let me share some information on how to prepare 1099 forms in QuickBooks Online.

There are several factors to consider why some of your vendors are not included in the 1099 list. Ideally, you can report 1099's for contractors and vendors you paid via cash or checks with a total of $600 and more. However, payments paid via credit card, debit card, gift card, and PayPal won't be included in 1099s. As mandated by IRS, you can exclude electronic payments when reporting 1099-MISC.

Lastly, let's make sure your vendor and contractor payments are recorded to the expense account. Also, this account should be associated with the correct box from the 1099-MISC form. You can generate the Transaction List by Vendor report. This displays your transactions grouped by vendor.

Here's how:

Go to the Reports menu.
Select the Transactions List by Vendor report.
Click the Customize button.
Set the Report period to Last Year (or Last Calendar Year).
Expand the Rows/Columns section, choose the Change columns link.
Put a checkmark on the Split box.
Go to the Filter section.
Check the Vendor box and from the drop-down, choose 1099 vendors who are in question.
Select Run report.
Look under the Splits column for what accounts the vendor's transactions were tied to.

To learn more about preparing 1099-MISC forms in QuickBooks, you can check these articles:

Leave a comment below if you have other questions about preparing year-end taxes in QuickBooks. I'm always here to help.

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1099 Reports show Vendors marked NOT eligible