1099-MISC ~ Customers (not vendors)

Hello there, @IMP4.

Let me help and provide insight about 1099-MISC for customers in QuickBooks Desktop (QBDT).

To start, If you need to create a 1099 for your client in QuickBooks they should be entered as vendor or contractor since a 1099 is only for vendors or contractors, not customers.

Before you create or file your 1099, you'll have to update your QuickBooks to process your 1099-NEC and 1099-MISC forms. IMPORTANT: You must be on the latest release for your 1099s to print correctly.

• QuickBooks Desktop
• To make sure you get the latest QuickBooks update, select the Reset Update checkbox.
• QuickBooks Desktop for Mac

Here's how to create and file 1099:

1. Go to Vendors, then select 1099 Forms, then Print/E-file 1099 Forms.
2. Create a back up.
3. Select Get Started for the 1099 form you want to create. If you need to create both 1099-NEC and 1099-MISC, you’ll need to repeat the steps for the other form. Important: There are changes to the 1099 forms and boxes, so choose your forms carefully. Most businesses will choose “Nonemployee compensation, Box 1 on the 1099-NEC, but check with your accountant if you think you might have made other types of payments. If you’re filing for New Jersey or Wisconsin, 1099 forms filed in these states have special rules for boxes 16 and 17. See File your state 1099 forms.
4. Select vendors that need a 1099 form and select Continue.
5. Verify the vendor information is correct. You can edit any incorrect information by double-clicking on the section that needs updating. Select Continue.
6. Map the vendor payment accounts. Go to the drop-down in the Apply payments to this 1099 box section. Select the account you want to link the payment to. If any boxes are gray, they are mapped to the other 1099 form. You only map accounts to one 1099 form. When complete, select Continue. Note: If you see a message in red stating your settings do not match the current IRS thresholds, select Show IRS 1099-MISC filing thresholds and choose Reset to IRS Thresholds.
7. Review your payment information for exclusions. For more information on what can be excluded see What payments are excluded from a 1099-NEC and 1099-MISC? Select View Included Payments or View Excluded Payments to see detailed reports. Select Continue.
8. Review the vendors and amounts you're going to report. Select Continue. Note: If you want to see the vendors who don't meet the IRS threshold, select View Summary Report.
9. Choose whether to print 1099s or e-file. If you choose to continue to e-file your 1099s, follow the steps below.

For more detailed information, refer to this article: Create and file 1099s with QuickBooks Desktop.

I'll also add this article to guide you in  running, printing, and customize payroll reports: Run payroll reports.

Don't hesitate to leave a comment below if you have follow-up questions about 1099-MISC or other QBDT-related concerns. I will answer them in any possible way.

I know what its for, its not how I set it up.

My customers collect rent (well I do for them)- therefore they should receive a 1099-MISC.  But with that ALL that being said does this mean I have to recreate the wheel?  My business has grown as before I only sent one out and hand wrote it.- Now its an issue.

I appreciate you for returning to this thread and providing an update about your concern, @IMP4.

In regards to recreating all clients to contractors or vendors, QuickBooks can only generate 1099 for MISC and NEC. I suggest seeking advice from your accountant since we're unable to generate a 1099 for customer profiles.

I'll also add these articles to help you print 1099 and learn more about 1099.

• Get answers to your 1099 questions.
• Print your 1099 and 1096 forms.

Don't hesitate to leave a comment below if you have follow-up questions about 1099 or other QBDT-related concerns. I will answer them in any possible way.