1099 - Rental Income account not mapping to 1099-MISC

Let's get the Rental Income account mapped to 1099-MISC. pretzel wagon.

There are multiple categories of contractor payments you might have made. Based on your needs to file both the 1099-MISC and 1099-NEC, you'll need to adjust the Chart of Accounts to determine which type of boxes to select. That way, you'll be able to track these types of payments separately. 

Before you begin, create a backup. Then, identify the amounts paid and to which accounts by creating a 1099 Summary report. Here's how:

1. Go to Reports, then select Vendors & Payables.
2. Choose either 1099 Summary or 1099 Detail.
3. Reports will default to the Last Calendar Year, so be sure the report is set up for the correct date range next to Dates at the top of the report.
4. Use the 1099 Summary to identify the vendors and the 1099 Detail to identify the transactions. 
5. Review the totals to determine what amounts may need to be moved.

After editing the accounts or payments, previous reports will update and not reflect prior year filings. You may want to print these reports to keep records before making any adjustments.

Next, for the existing Rental Income account, make sure to assign an account in the Tax-line Mapping section.

Once done, you can create a journal entry to move amounts in the Rental Income account. Here's how:

1. Go to Company and select Make General Journal Entries.
2. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
3. Select Save & Close or Save & New if you have more entries to make.
4. Repeat this process for each payment you need to move.

You can also edit existing payments to the new accounts by following the steps below.

1. Select Vendors then Vendor Center.
2. Choose the vendor and locate the transactions you need to edit.
3. Double-click to open the transaction to make your edits.
4. After you have made the changes, select Save & Close.
5. Repeat this process for each payment you need to change.

After making the changes, run the 1099 Summary or 1099 Detail report to validate if the changes reflect the correct amounts in each account. Please browse this article for the complete guide: Modify your chart of accounts for your 1099-MISC and 1099-NEC filing.

You can then start filing the 1099-MISC and 1099-NEC forms in QuickBooks Desktop.

I hope you're now finding this easy. Please let me know if you still have questions or concerns with 1099s. I'll be here for you. Take care and have a nice day ahead.

Hi MaryLand, thank you for the reply.

I am still a bit confused - on the 1099 Detail report, I can see the vendors with payments in Rental Income, in fact everything on my 1099 Detail report looks good. When I go to the "Print/e-file 1099 Forms" process, the Rental Income account still does not show up under the "Map Accounts" steps.

I have confirmed the account does have a Tax-Line Mapping in the Chart of Accounts (and has an identical mapping to other 1099 accounts that are pulling through properly). Are you still recommending to make another Rental Income account and moving these entries over and thinking it will somehow end up on the 1099 report even with the same tax-line mapping?

Hi MaryLandT, thank you for the reply. I just replied, but wasn't signed in, so will try again =).

I opened the 1099 Detail Report, and all of the transactions are in there, and look proper - the vendors with Rental Income clearly show up and look good. I have confirmed the "Rental Income" account in my Chart of Accounts is filled out correctly, and does have a proper Tax-Line Mapping; it actually has the same mapping as other 1099 accounts that are flowing through properly.

Are you suggesting I still proceed with creating a new Rental Income account, even though it will have an identical tax-line mapping? I just can't figure out why it looks perfect on the 1099 detail report, but when I run the Print/e-file 1099 Wizard, under Account Mapping, the Rental Income account doesn't show up as an option to map at all.

Thank you again!

Hello there, @pretzel wagon. Let me join the thread and help you with your mapping concern for 1099.

When filing for both the 1099-NEC and the 1099-MISC, you'll have to create a new expense account since you can only map an account to one of the 1099 forms.

So to answer your question, you can proceed with creating a new Rental Income account. Then, use a journal entry to move the amounts from one account to another. For detailed steps, you can follow the steps provided by my colleague, MaryLandT.

For more information on the new 1099-NEC form and instructions, I suggest visiting the IRS website.

Here's also a great resource to learn what to do if you file both 1099-MISC and 1099-NEC: Modify your chart of accounts for your 1099-MISC and 1099-NEC filing.

If you have any additional questions or concerns about Form 1099, please feel free to reach back out. I'll be glad to be of your assistance at any time. Have a wonderful week. Take care!

Thank you for the reply Mirriam.

I have made a new rental account (Rent Income - 1099), and made general journal entries to move all of the 1099 eligible transactions to the new account. The only entries in the new account are the handful of 1099 eligible rent payments I received. 

When I go back to the 1099 wizard (Print/e-file 1099 forms), the new account is still not showing up under the "Accounts used for 1099" list, it's simply not there. To confirm, this account has no transactions related to 1099-NEC (and is not labeled as such on the 1099-NEC query). 

I guess I am still confused, it's as if the account needs to be flagged as an "Account use for 1099" somehow; I have confirmed in the chart of accounts it has the proper Tax-Line Mapping (Income: Other Income), and all of the vendors in the account are 1099 eligible.

Thanks again.

Thank you Rea. I had originally edited the original deposit to the new account which did not work. Instead, I followed your advice and performed a General Journal entry for each transaction (Debit - Rental Income, Credit - Rent Income 1099). Now the "Rent Income - 1099" account is indeed showing up under "Show 1099 accounts," and I have assigned it to Box 1-Rents on the 1099-MISC wizard. The issue now is none of the payment amounts are pulling through on step 5 "Confirm Entries." It is both blank for Total Included on 1099 and Total Unmapped payments. Could you please advise on why these amounts aren't pulling through with the account assigned? I have confirmed the amounts are indeed populated on the P&L report.

If easier to set up a phone call, happy to do so. Thank you again.

Rea - you can disregard my last reply, I believe I have it figured out now (not 100% sure how, but it is pulling through).

I have one rent/lease payment through the business each year

Most of my 1099's are 1099 NEC, only one 1099 MISC

When I try to print the one 1099 misc, it defaults to zero and won't print saying the amount does not meet the threshold

How do I correct this .?

I want to make sure this concern is taken care of @judy. Let's check the settings to help you ensure your transactions are categorized under the correct account and class.

To ensure that you file the correct 1099 form for your contractors, make sure that the payments made to them exceed the annual $600 cash threshold. This means that only those contractors who have received payments above this threshold should be included in your 1099 reports. You can easily determine which contractors didn't meet the threshold by following a few simple steps. Please note that payments made through credit cards are not included in this threshold and should not be reported in your 1099 forms. Financial institutions will report these payments separately. If you need more information about which payments are excluded from a 1099-NEC and 1099-MISC, please refer to the relevant guidelines.

Here is a guide on how:

1. Go to Reports, then select Vendors & Payables.
2. Select 1099 Summary.
3. In the 1099 Options dropdown menu, select Ignore thresholds.
4. If you see the Vendor, they have not met the threshold.
5. If this is a 1099 Vendor using 1099 Accounts, you need to enter more transactions or change the thresholds.

• Go to Edit and select Preferences.
• On the Preferences window, select Tax:1099 from the left pane, then select the Company Preferences tab.
• Select the link and click here next to If you want to map your accounts to boxes on form 1099-MISC.
• QuickBooks 1099 wizard page will come up. In the Map Accounts step, select Show IRS 1099-MISC filing thresholds link.
• In the 1099-MISC IRS Thresholds window, double-click the Thresholds column for the appropriate 1099 Box.
  • NOTE: The screen will display; Your settings do not match the current IRS thresholds message in red. Select Reset to IRS Thresholds if you want to follow the IRS-mandated threshold and add more transactions instead.
  • Select Save & Close.

Moreover, you can check this article to know more about what to do if you need help adding a contractor or changing an amount when you create your 1099s in QuickBooks Desktop: Troubleshoot missing contractors or wrong amounts on 1099s.

I'm also adding this helpful module you can browse about paying contractors or vendors, you may need to provide them with a 1099. The IRS has separated nonemployee compensation into two forms called the Form 1099-NEC and Form 1099-MISC.

Please let me know if you encounter any other issues or have further concerns and clarification about trying to print the one 1099 misc. I want to make sure everything is taken care of. Have a great day!