I have a vender that we paid $625 in 2020. I need $250 to go in box 1 and $375 to go in box 3 on the 1099-Misc form. QuickBooks doesn't map the payments. Is it because the number in each box is less than $600? Don't I need to send a 1099 because the aggregate amounts are over the $600 threshold? The same thing happens with a vender that we paid $3,500. The $3,000 prints in box 1 but the $500 doesn't print in box 3. Any ideas how to get the information to print on the 1099s?
Thanks for sharing your concern with us. I'll be happy to lend a hand in mapping your accounts designated to boxes in your 1099 Misc Form.
Each box reported in your 1099 Misc form represents the payments you've made to your vendor.
The amount in box 1 is used to report the rental income of $600 or more for all types of rents. If you paid rent for your business space to an individual, this is where you enter the total amount you paid during the calendar year.
Since your rental amount is lower than the required threshold, this won't be reported in your tax form. For additional information, please refer to the Schedule E Instructions.
Additionally, box 3 will report the amount in your Other income account. If you provided a taxable payment to someone over the amount of $600 and it doesn’t fit in any of the other boxes, it goes in Box 3. You can seeIRS Publication 525, Taxable and Nontaxable Incomefor more details.
I'd recommend reaching out to your accountant for further advice in getting the proper info in your tax form. This way, we can make sure that the amounts reported in your box 1 and 3 are accurate.
You can also check our Year-end checklist in QBDT. This will guide you through the process of completing your task in QuickBooks so you can close your previous year and prepare for the upcoming one.
I'm still here if you have other questions regarding your payroll service. Just post your questions here, I'll respond as soon as possible.
So if the amount in box 1 is $250 and the amount in box 3 is $375, QB won't generate a 1099 because neither box isn't over the $600 threshold? Don't I need to send a 1099 to a vender that I paid over $600? In this case, QB won't let me generate a 1099 because the amount in an individual box isn't over $600, but the vender still received $625 from me.
Allow me to add more details with regards to your 1099 Misc thresholds queries.
Yes, you're right. QuickBooks will not generate the amount in your boxes 1 and 3 since they aren't over the $600 threshold. Also, to verify if you still need to send your 1099 since you've paid a total of $625 to your vendor, I'd recommend reaching out directly to the IRS or your accountant.
This way, they can provide you the proper guidelines for handling this kind of situation.