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mikoa
Level 1

1099 NEC amount correction

I'm preparing to e-file 1099 using QB online and having a problem correcting the amount of 1099 for one vendor. One payment was recorded as a debit of AP, and the accounts payable is not in the option of mapping dropdown to include what account should be in the 1099 amount. I recorded this expense in December 2020 since it was the expense should be in 2020 but we haven't paid yet so entered it as AP. Then the amount was paid in Jan 2021 so it must be included in the 1099 amount for 2021. However, QB is not allowing me to include this amount since AP doesn't show up as a mapping option as I mentioned...

Is there any way to override the amount on 1099?

The vendor is a law office and the difference amount is rather large.

3 Comments 3
ReymondO
QuickBooks Team

1099 NEC amount correction

Hi there, @mikoa.

 

Can you share with me the steps on how you record this transaction inside QuickBooks? Any further info would be much appreciated. 

 

There is no option to override the amount in the 1099 tax form. This form will only report the payments you've made inside QuickBooks. 

 

If you create a bill to record the expense, simply create a bill payment that is dated 2021. That way, it will show up in 1099 form. Here's how:

 

  1. Click the +New icon and select Pay bills.
  2. Look for the bill and enter the amount.
  3. Fill the rest of the information and click Save.

 

Please also take note that Accounts Payable cannot be mapped in the 1099s. You can only select expense, liability, and assets type of accounts when mapping the payments.


Moreover, you can run vendor reports and use them are a reference to map your accounts.  For more details, check out this article: Create a 1099 report for vendors and vendor payments.

 

Please know that our doors are always open to help you with any QuickBooks-related concerns. Take care and enjoy the day!

mikoa
Level 1

1099 NEC amount correction

Hi Raymond,

Thank you very much for your comment.

 

The transactions that were recorded in QB are the following. 

These transactions are recorded using manual Journal entries.

 

In Dec 2020 (To include the unpaid expense in 2020 that should be recorded as Dec 2020 expense)

Dr. Professional service fee $20,000

     Cr. Accounts Payable $20,000

 

In Jan 2021 (To record an actual payment to this vendor) 

Dr. Accounts Payable $20,000

     Cr. Cash $20,000

 

So the actual payment is made in Jan 2021, since the expense is recorded in Dec 2020 I cannot include this amount in 1099. (This amount was not included in 1099 last year either) 

Is there any way I can correct this problem? If I can't figure out via Quickbooks online, I'm considering using the Standalone Intuit 1099 E-file service but I'm not sure if it is possible when I already use QB Online for bookkeeping. 

MirriamM
Moderator

1099 NEC amount correction

Hello there, @mikoa. I appreciate you coming back and providing additional details.

 

Including the Accounts Payable in 1099 is not an option. To know the accounts you can select, see this link published by IRS: Instructions for Forms 1099-MISC and 1099-NEC.

 

In your case, you may consider contacting IRS or a tax professional for guidance in handling this situation. 

 

To learn more about filing 1099, visit this article: Create and file 1099s using QuickBooks Online.

 

Let me know if you have other concerns about 1099. I'm just around to help. Take care always.

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