How can I get vendors paid with a credit card to show up on the 1099 summary?

Good afternoon, @accountspayable2

Glad to have you in the Community!

I'll give you some insight into the 1099 summary.

For the payments not showing, there may be a few explanations. It should only be disclosed to vendors you paid through cash or check, and only if the payments exceed $600 or more. (It is up to you to say something inferior to this). It will be missed if you entered, e.g. a request for payment but used DBT or Paypal as the check number. For more detailed information, please see the article below.

Vendor missing from 1099 Summary Report or 1099 E-file Service

You should also check the mapping on your accounts. Unless the account that you used isn't marked when you entered the bill or paid the vendor, no payments will be shown. See File and register 1099s using QuickBooks Desktop.

Thanks for reaching out. If you hit any bumps in the road along the way, we're always here to help.

Vendors paid only with a credit card should not receive a 1099, and since credit card data won't be included on the report or the 1099 form, they don't appear.

Do you want them to appear on the report for some other reason?

Are you saying that 1099 eligible vendors paid by credit card should not get a 1099 Misc? Doubt the IRS will agree with that.

Hello, ARbooks. 

I agree with our community champ BigRedConsulting. You can also contact directly to the IRS to confirm about it.  

Through this article, you can read about what payments are excluded from a 1099-NEC and 1099-MISC. 

Also, you can read through IRS Publication 15 about the employer's tax guidelines.  

Please let me know If you have any other questions. I'll be here to assist you anytime. Stay safe!

Absolutely correct and it has been this way. Credit/debit card patmrnts to vendors are NOT to be included in any 1099 Misc or the new 1099 NEC since they are includedmin a 1099k produced and submitted by the credit card company.

They do, actually.  They changed the rules many years ago to exclude credit card payments from 1099 reporting.

Hi everyone! We paid a law firm through credit card, and for that reason QBO is NOT pulling the law firm in the 1099 forms. How should I proceed in this case? Do I still need send the law firm the 1099? (maybe outside QBO?)or the credit card company will do.

Thanks in advance!!

Hey there, @sn90. Thanks for joining the thread. I've got some information you need about fees paid through credit card. 

Payments made via credit card, debit card, or third-party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments, so you don't have to. 

I suggest contacting the IRS to know what exact form you can submit to the law firm paid by credit card as well as how it's processed.

You can also visit this article to learn more about the boxes on Forms 1099-NEC and 1099-MISC: Understand payment categories for the 1099-MISC and 1099-NEC. 

Let me know in the comment below if you have any other questions about 1099s. I'll be here to lend some help. Keep safe and have a good one!

What if we paid a vendor with both credit card and check. Do we omit the credit card payment from 1099 reporting? How can we do this?

Hello, @almaagu1229.

I'll address your concern about which payments were excluded from the 1099 reporting.

As provided by my colleague Nicole_N above, Credit card, debit card, and third-party system payments (like PayPal) are not included in the 1099-MISC and 1099-NEC calculations. It's because the financial institution reports these payments, so you don't have to.

That said, Check payments for your vendors will only show on the reporting. Thus, you don't have to exclude those credit card payments since the system will detect those as nonreportable payments.

To understand more about this, check out this resource: Understand which payments are excluded from a 1099-NEC and 1099-MISC.

Also, these handy articles can give you more insights on how to complete workflow and details about preparing a 1099 and get answers to your frequently asked questions about form 1099, such as running reports to view your 1099 vendors and their payments:

• Create and file 1099s using QuickBooks Online.
• Get answers to your 1099 questions

If you have any other questions about printing forms in QuickBooks Online Payroll, please feel free to comment below. I'll get back here as soon as possible to help you again. Take care always.

Thank you. Right now, the credit card payment is being included in the 1099. How does the system detect these credit card payments? 

Hey there, almaagu1229. 

Seems like this is a duplicate post. I already provided some information regarding to this matter which you may access through this link: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/re-we-paid-a-vendor-with-bo.... 

Just let me know if you need further assistance by clicking the reply button. We're here to help you.

but what if I just want CC payments on the 1099 Summary report?  How do I get it to the report?  Maybe it can show under "uncategorized"?  just so I have a total amount paid to that Sub for my accountant.  thanks

I'm here to elaborate on some details about 1099 payments, Medina. 

Payments to 1099 vendors made via credit card, debit card, or third-party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments. Therefore, the QuickBooks system has been programmed to identify only acceptable transactions and exclude payments through credit cards.  For now, running a 1099 Summary report that will show your credit card payments is unavailable.

As an alternative, you can pull up the Transaction List by Vendor report so all the payments made to a specific vendor or contractor will show up. To do so, 

1. Go to the Reports tab, and then select Vendors & Payables.
2. Choose Transaction List by Vendors.

Furthermore, QuickBooks offers a variety of reports for your business needs. You'll only have to customize them to make sure you'll get the right data. I've got this article for more details: Customize Reports In QuickBooks Desktop.

Please touch base with us there in the Community if you need further assistance with 1099. Remember, we'll always make sure to help you anytime. Have a good one!

How do you figure MY American Express or whatever, is going to issue a 1099 to someone I pay with it?!!!  NO WAY THAT IS GOING TO HAPPEN!!!!

You are completely confusing credit card MERCHANT services, who DO issue a 1099Ks, from BUSINESSES who pay for goods and services with their credit card.  NO WAY is my American Express or whatever, going to issue a 1099.  They couldn't possibly and anyway have NO information on the vendor.

NOT true.  All these people posting are giving out wrong information.  1099s have become a big issue with the IRS.  GET PROPER TAX ADVICE.

As mentioned with my colleagues above. The QuickBooks system has been programmed to identify only acceptable transactions and exclude payments through credit cards. We're here to help you with the details of the 1099 payments in QuickBooks Desktop (QBDT), Bea2024.

Payments made via credit card, debit card, or third-party systems like PayPal are excluded from the 1099-MISC and 1099-NEC calculations. These payments are reported by the financial institution. Vendors paid solely with a credit card should not receive a 1099, and since credit card data isn't included on the report or the 1099 form, they won't appear.

Through this article, you can read about what payments are excluded from a 1099-NEC and 1099-MISC. 

You can explore this article to learn which payments should be excluded from the 1099-MISC and 1099-NEC form: Understand which payments are excluded from a 1099-NEC and 1099-MISC.

Also, these articles provide more understanding of completing workflows and details about preparing a 1099. They include answers to frequently asked questions such as running reports to view your 1099 vendors and their payments:

• Create and file 1099s using QuickBooks Online.
• Get answers to your 1099 questions.

Let me know in the comments below if you have any other QuickBooks-related questions about the 1099 payments. I'm here to help, Bea2024.

@Bea2024  You seem to be misunderstanding.

Yes, your American Express will not send a 1099 to anybody you pay.

However, the recipient's merchant service provider will report all income the recipient received by credit card or other electronic service (Paypal, etc) to the IRS on a 1099-K.

If the business that pays the recipient by credit card were to also report the credit card payment on a 1099-NEC, the same income will be reported to the IRS twice without the IRS being any the wiser.

When this happens, the IRS will be looking for the recipient to report the income twice. If the credit card income being double-reported outweighs their cash and check income, this can lead to the recipient being unfairly taxed on artificially inflated income.

This is why you do not include credit card or other electronic payments on a 1099-NEC or 1099-MISC. The IRS is already being made aware of it.

I had this exact situation happen with one of my clients and a shockingly incompetent large company who paid them in excess of $300,000.00~ for a job by credit card, and decided to issue a 1099-NEC for it.

Let me tell you, when the IRS came looking for $600,000.00~ on their income tax return instead of the $300,000.00~ they actually received, the situation got ugly quickly.