Missing Class Amounts in 1099

@jreardon The first question that comes to mind is what the missing class is.

If it happens to be contractors that are paid by credit card or similar, that would be the issue.

Payments by credit card or similar electronic payments do not go on a 1099-NEC; they are already accounted for by the contractor's merchant service provider by way of a 1099-K, something you wouldn't be involved in.

Payments to these contractors are not made via credit card or similar. 

@jreardon It's going to be a little difficult to provide advice without a more detailed description of the problem class and the associated transactions. There's obviously some kind of common thread in that class, and Quickbooks has a number of functions that will automatically exclude certain transactions from the 1099-NEC report.

Hi, @jreardon.
 

I agree with @FishingForAnswer. Payments made via credit card or other electronic payment methods, such as PayPal, should not be reported on a 1099-NEC. The IRS specifically excludes these types of payments (credit card, debit card, gift card, PayPal, etc.) from being reported on Form 1099-MISC or 1099-NEC, as they are already reported by the payment processor on Form 1099-K. QuickBooks Desktop handles this for you automatically by excluding them from your 1099 forms.
 

In addition to this, make sure that all accounts used for contractor expense transactions are properly mapped to the correct 1099 category during the setup process.

To verify which accounts are included or excluded from your 1099s, you can pull up the Review payments for exclusions.

If there are any additional details you'd like to share or if you need further clarification, feel free to add them in the comments below.

We are a nonprofit and I use classes to track the two different grant funds that I pay out to our contractors.  

So, in this example, class A is one grant fund and class B is the second grant fund.  

When I enter bills from my contractors, I will use the same account expense item (e.g, onsite visit) and designate the expense item as being associated with either class A or class B. 

When I run the 1099, all the correct expense accounts are being pulled in from class A but nothing is being pulled in from class B.

Does that provide a clearer picture of my issue?

Thanks for getting back to us, jreardon.

Before we proceed, may I know how did you record the bill from your contractor? Did you record these grants and assigning Class A and B to separate line items, or did you record it separately for each Class?

When setting up the mapping process for your 1099 in QuickBooks, it's important to note that QuickBooks pulls up the expense account and doesn't rely on the  defined class you selected. If you recorded the transaction separately and paid the bill using the credit card tied from the second grant fund, that is the reason why it is not reflecting in your 1099.

To give you more information  when filing 1099 in QuickBooks Desktop, check out this article for your reference: Create and file 1099s with QuickBooks Desktop.

If you have any questions or other concerns about 1099, let us know. The Community Team is always right here to help you.

I record the line items separately and assign each line item to a class (either A or B).  The chart of account line item / account type and description may be the same with just the class assignment being different.  Which is what is confusing to me.  QB is recognizing the line item when it is assigned to class A and is correctly pulling it into the 1099 but QB is not recognizing (when it should) the exact same line item when it is assigned to class B.

I do not pay any of these contractor bills/invoices with a credit card so that is not the issue. 

Thank you for keeping us updated on this thread, and I truly appreciate the effort you're putting into resolving this issue, @jreardon. I completely understand the importance of pulling the missing amounts in your 1099s, and I’m here to guide you through a couple of solutions that should help.

Since you've already mapped out all your contractors eligible for a 1099-NEC, and they weren’t paid via credit card, the next step is to update your QuickBooks Desktop to the latest version. Updating your software not only ensures it runs seamlessly but also helps prevent any issues like this. Here's a helpful article with step-by-step instructions to guide you: Update QBDT to the latest release.

After updating, if the amounts are still missing, we can try re-sorting the class list to address the issue.

Here's how:

1. From the Lists menu, select Class List.
2. In the Class dropdown, click Re-sort List.
3. Hit OK.

If the problem persists after re-sorting the class list, I recommend reaching out to our Live Support team. They have the necessary tools to securely review your account, identify the cause of the issue, and guide you on the possible next step.

To find out the best time to call, you can visit this page to check our Support Hours: Get help with QuickBooks products and services.

If you need further assistance with your 1099s, please don't hesitate to use the Reply button below. Our Community team is always here and ready to support you throughout the process!

Thank you for the troubleshooting suggestions.  Neither of them corrected the issue.