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C37Porter
Level 2

1099 not including payments after April 15

My 1099 is excluding all payments after April 15, 2020. I have tried as NES and MISC, same results. I have used the same vendor and the same expense account for all payments. This year I upgraded to QB Desktop Premier 2021 in September, and migrated my company data over with no issues. I last updated the QB file 1/7/2021, which did help as I wasn't getting any 1099 data or even the wizard when I tried to run the report before that. Any ideas what is causing payments after April 15th to be excluded?

Solved
Best answer January 17, 2021

Best Answers
BigRedConsulting
Community Champion

1099 not including payments after April 15

RE: I went through the reset updates procedure, but that still didn't correct the problem of excluding all vendor 1099 payments after April 15th.

 

What you describe in this thread suggests the accounts used on the payments are such that they are initially  included, but then they're being excluded because of other properties.

 

Could it be that you changed the type of payments during the year? QuickBooks will properly exclude payments that are not reportable on the 1099, such as Credit Card and PayPal payments. Are your payments cash or check from a bank account? If so, they're normally included, but can be excluded based on their check "numbers", if they include key text that suggest they're not reportable.

 

Typically for bank accounts if the payment looks like a debit card payment or electronic transfer, then it's excluded. QuickBooks looks at the check number field to determine this. Values like Debit or ACH will trigger the exclusion, if I remember correctly.

 

There used to be a specific list of values in QB help, but help has gone to s*it lately, and seems to just regurgitate the massive amount of misinformation found on this site.

 

https://quickbooks.intuit.com/learn-support/en-us/1099-misc-payroll-forms/vendor-payments-to-exclude...

View solution in original post

9 Comments 9
MaryLandT
Moderator

1099 not including payments after April 15

Let's find out why 1099 is excluding payments after April 15, C37Porter.

 

It's possible someone had accidentally turn off the 1099 tracking on your company file. You can check again the set up on your preferences.

 

Let me show you how:

 

  1. Go to the Edit menu, then Preferences.
  2. Choose Tax: 1099,  then select the Company Preferences tab.
  3. Select Yes in the Do you file 1099-MISC forms? section.
  4. When you're done, click OK to save your settings.

Then, make sure all contractors are set up for tracking their payments. Here's how:

 

  1. Go to the Vendors menu, then Vendor Center.
  2. Choose a vendor's name and then select Edit✎.
  3. Select the Address Info tab and review the info:
  4. Make sure you have the correct two-letter state abbreviation and ZIP code.
  5. If the vendor is a person, the vendor's legal name should appear in the First Name, M.I., and Last Name fields.
  6. If you have the company name but not the person's name, leave the Company Name field blank. This prevents them from showing up twice when you prepare your 1099-MISCs.
  7. Go to the Tax Settings tab.
  8. Select and check the Vendor eligible for 1099.
  9. Enter the vendor's tax identification number in the Vendor Tax ID field.
  10. When you're done, click OK.

QuickBooks will start tracking all of their payments behind the scenes. And, here's how to prepare and file your 1099s during tax season.

 

Then, check the payment method of your vendors. Using credit card will cause QuickBooks to ignore 1099 payments.

 

Also, when you upgrade to the newest version of QuickBooks, the mapping of your Chart of Accounts will reset. Check out this article on how to remap them: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing.

 

Stay in touch with me if you need additional information by commenting below. I'm always around to help you.

C37Porter
Level 2

1099 not including payments after April 15

Thanks for responding. I checked to see if the company file preferences had been changed when I imported it to the 2021 version of QB purchased in September, and everything was as it should be. I only have 2 vendors to send a 1099 for, both are reflecting only the payments made before April 15 in the Included report, with all payments after that date in the Excluded report.  The issue appears date related, not the chart account set up, or vendor set up. 

 

I can send them manually, but really want to get this fixed so it doesn't come up every year going forward.

MarsStephanieL
QuickBooks Team

1099 not including payments after April 15

Hello there, @C37Porter.

 

Allow me to share some details to ensure that you have downloaded the latest update about the forms in QuickBooks Desktop (QBDT).

 

The scenario you're experiencing may be because the program wasn't updated. I'd suggest updating QBDT to solve any data-related issues in the program. I'll show you the way on how to do that:

 

  1. Close the QuickBooks program.
  2. Open the Windows Start menu and look for QuickBooks Desktop.
  3. Right-click the icon and select Run as administrator.
  4. While on the No Company Open screen, go to the Help menu and click Update QuickBooks Desktop.
  5. Go to the Update Now tab and tick the Reset Update checkbox.
  6. Click Get Updates. Then, close the program. I've added some screenshots to see how it looks like:

 

After that, to install the updates, select Install Now and click Yes

 

I've added this article for your future reference about managing 1099 forms: Create and file 1099s with QuickBooks Desktop.

 

Once done, try to check if the payments made after April 15, 2020 has reflected on the reports. If not, I'd recommend contacting our QuickBooks Desktop Care Team to help you get to the bottom of this.


You're always welcome to tag my name in the comment section. I'd be happy to lend a helping hand. Take care.

C37Porter
Level 2

1099 not including payments after April 15

Hello,

 

Thanks for your response. I went through the reset updates procedure, but that still didn't correct the problem of excluding all vendor 1099 payments after April 15th. I'll give the care team a try, but last time I called support all they wanted to do was sell me a support package.  For that much money I think I'll just do the 1099's by hand.

BigRedConsulting
Community Champion

1099 not including payments after April 15

RE: I went through the reset updates procedure, but that still didn't correct the problem of excluding all vendor 1099 payments after April 15th.

 

What you describe in this thread suggests the accounts used on the payments are such that they are initially  included, but then they're being excluded because of other properties.

 

Could it be that you changed the type of payments during the year? QuickBooks will properly exclude payments that are not reportable on the 1099, such as Credit Card and PayPal payments. Are your payments cash or check from a bank account? If so, they're normally included, but can be excluded based on their check "numbers", if they include key text that suggest they're not reportable.

 

Typically for bank accounts if the payment looks like a debit card payment or electronic transfer, then it's excluded. QuickBooks looks at the check number field to determine this. Values like Debit or ACH will trigger the exclusion, if I remember correctly.

 

There used to be a specific list of values in QB help, but help has gone to s*it lately, and seems to just regurgitate the massive amount of misinformation found on this site.

 

https://quickbooks.intuit.com/learn-support/en-us/1099-misc-payroll-forms/vendor-payments-to-exclude...

View solution in original post

C37Porter
Level 2

1099 not including payments after April 15

DIng-ding-ding!!  We have a winner!!  When we went into Covid lockdown mode I started paying with Paypal and used that for the check # on those payments!!  I modified the check number on one and voila - it is now on the Included 1099 payment list! Now I can edit the others, and more importantly going forward can avoid this issue in future years. Boggles the mind that payments for services sent via Paypal are excluded since it comes straight from the checking account just like a check.

 

Thank you so much Big Red, you really are a Champ!! 

BigRedConsulting
Community Champion

1099 not including payments after April 15

Glad that was it.

But, you shouldn't include those payments!

 

If you sent payments via PayPal you shouldn't report them on the 1099-Misc or NEC from your end because they will be reported by PayPal on a 1099-k.  See https://www.irs.gov/businesses/understanding-your-form-1099-k

 

If you do this, the same payments will be double-reported, creating a headache for your recipients, who will either have to explain this to the IRS (good luck with that!) or ask you to amend your 1009 to them, creating a headache for you!

BSOL
Level 1

1099 not including payments after April 15

Anyone figure this out yet?  This has to be a bug.  How is the paypal account supposed to be set up in QB?  I think of it as a bank account but that isn't going to give the transactions the right "type" for the 1099 to exclude it.  Does it need to be set up as a credit card?  I have the same issue with payments that come out of the cash account that are debit card charges.  QB doesn't allow you to modify the transaction type especially if you use the bank feeds function.

MaryLandT
Moderator

1099 not including payments after April 15

I'm here to provide some insights on how to include payments for 1099, BSOL.

 

Electronic payments via credit cards or PayPal transactions don't count in QuickBooks. You can refer to this article for additional information: What payments are excluded from a 1099-NEC and 1099-MISC?

 

I recommend consulting your accountant for specific instructions on how to include those PayPal entries. If you don't have one, here's how to find an accountant near you.

 

Always visit us here in the Community forum if you have other questions. Or leave a comment below if you have follow-up questions. I'll be around to help you.

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