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Eve2019
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 January 09, 2020

Best Answers
BettyJaneB
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
BettyJaneB
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

Eve2019
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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