Hi there, aanchorcer.
Welcome to the QuickBooks Community. Thank you for reaching out with your question about filing 1099s for 2025. Rest assured, we’re here to assist you every step of the way.
Before filing your 1099s, ensure you have a completed Form W-9 from each subcontractor. This form should include their correct legal name and tax identification number (TIN). Having this information will save you time and help prevent errors during the filing process.
If you haven’t added your subcontractors yet, follow these steps:
Step 1: Add Subcontractors to QuickBooks
- Navigate to Expenses & Bills in the left menu.
- Select the Vendors tab.
- Click New Vendor.
- Enter the following details for each subcontractor:
- Full legal name (exactly as shown on their W-9)
- Business address
- Tax ID number (SSN or EIN from their W-9)
- Under Additional Info, check the box labeled Track payments for 1099.
- Click Save.
Repeat these steps for each subcontractor you need to add.
Step 2: Record Payments Correctly Throughout 2025
When paying your subcontractors, follow these practices:
- Record payments as Check or Cash—not credit card, debit card, or third-party payment processors like PayPal or Venmo, as these are reported by the payment processors through Form 1099-K.
- Assign payments to an expense category, such as "Subcontractors" or "Contract Labor," to maintain accurate records for 1099 filing.
Step 3: File Your 1099s (Early 2026)
When it’s time to file:
- Go to Expenses & Bills in the left menu.
- Select the 1099s tab and click Prepare 1099s.
- Follow the on-screen steps. QuickBooks will guide you through the process for reviewing subcontractor details, mapping accounts, and filing the forms.
Make sure to file your 1099s with the IRS and provide a copy to your subcontractors by January 31, 2026, to stay compliant with federal regulations.
If you have additional questions or need clarification, feel free to click Reply here. We’re always happy to assist.
