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Level 4

1099 to Locally owned and operated

Hello,

 

If I purchased a computer from a Locally owned and operated business for $1,300 should I ask him for his federal tax ID so it shows on my QB Desktop reports. Is he eligible for a 1099 ? Last year I payed him more than $600 for a new computer too but did not reported.  He  basically hand builds computers to your specification and obviously sells them. 

Please advice.

Thanks

Solved
Best answer 01-09-2020

Best Answers
Highlighted
QuickBooks Team

1099 to Locally owned and operated

It's nice to see you again here in the Community, @Eve2019.

 

You can consider a vendor as a 1099 filer if you paid him $600 or more in cash or checks in the year. However, to confirm if the vendor meets the IRS guidelines to be set as an independent contractor, I recommend consulting your accountant.

 

Once verified, you can start adding your vendor for 1099. Let's start with turning on the 1099-MISC feature.

 

Here's how:

  1. Select Edit and then Preferences
  2. From the left press Tax: 1099
  3. Click the Company Preferences tab.
  4. Next to Do you file 1099-MISC forms? hit Yes.
  5. Tick OK to save the preference.

For complete details about the set up, please refer to the QuickBooks Desktop for Windows section in this link: How do I set up a contractor?

 

You can also check this article about the mapping of accounts for your guide: QuickBooks Desktop behavior: 1099

 

Reach out to me if you have any other questions. I'm always up for assistance. Have a good one!

View solution in original post

2 Comments
Highlighted
QuickBooks Team

1099 to Locally owned and operated

It's nice to see you again here in the Community, @Eve2019.

 

You can consider a vendor as a 1099 filer if you paid him $600 or more in cash or checks in the year. However, to confirm if the vendor meets the IRS guidelines to be set as an independent contractor, I recommend consulting your accountant.

 

Once verified, you can start adding your vendor for 1099. Let's start with turning on the 1099-MISC feature.

 

Here's how:

  1. Select Edit and then Preferences
  2. From the left press Tax: 1099
  3. Click the Company Preferences tab.
  4. Next to Do you file 1099-MISC forms? hit Yes.
  5. Tick OK to save the preference.

For complete details about the set up, please refer to the QuickBooks Desktop for Windows section in this link: How do I set up a contractor?

 

You can also check this article about the mapping of accounts for your guide: QuickBooks Desktop behavior: 1099

 

Reach out to me if you have any other questions. I'm always up for assistance. Have a good one!

View solution in original post

Highlighted
Level 4

1099 to Locally owned and operated

Yes thank you I did have this set up in my QB. i Guess I just need help with the   independent contractor was eligible for a 1099. thank you

 

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