Box 7 on 1099-NEC

Thank you for sharing your concern about the 1099-NEC form in QuickBooks Online (QBO), @Kjcustom. I understand that you see the same numerical value in boxes 1 and 7 when you preview the 1099-NEC forms, and you need clarification on this. Ensuring accuracy for your contractors is essential, and I appreciate your attention to detail. I want to ensure I provide the information to get this resolved.

You're correct that you'll only be required to file a federal 1099. Hence, box 7 of the form can remain blank since state filing for New York State isn't required. While this is the case, I just wanted to mention that QBO always carries over the amount reported in Box 1 of the 1099 NEC to Box 7 for the state income tax. 

Because it's part of the state information, you don't need to worry about the amount reported in the box since they are provided for convenience, and you can proceed with printing or e-filing the form. Refer to the Boxes 5-7. State Information section of this IRS guide: Instructions for Forms 1099-MISC and 1099-NEC.

Just in case, I'll provide these steps to ensure that 1099 information and account mapping are correct. Follow these steps to review your recipient's W-9 information:

1. In your QBO account, go to Expenses, followed by Contractors.
2. Pick a profile and review their Personal details.
3. Hit Save.
   

    

To review the account mapping of the 1099-NEC, navigate back to the Contractor's page and select Prepare 1099s. You'll be prompted to choose Let QuickBooks prep for me or Use QuickBooks to prep my own.

If you choose Let QuickBooks prep for me:

1. Review your Company info. Ensure that your Legal Company name and tax ID info match what the IRS has on record.
2. Hit Confirm info and start filing. QuickBooks will scan your books and identify relevant payments to corresponding 1099 boxes automatically.
3. Select View results.
4. Choose Update account mappings and review the account name and appropriate 1099 box.
5. Pick Save. Then, Preview forms.
6. Follow the on-screen steps.
   

    

If you select Use QuickBooks to prep my own:

1. Review your Company info. Ensure that your Legal Company name and tax ID info match what the IRS has on record.
2. Hit Confirm info and start filing.
3. Choose Select accounts to the applicable expense accounts.
4. Under the 1099 box column, pick the appropriate boxes from the drop-down list.
5. Select the following Next buttons. Then, pick Preview.
6. Follow the on-screen steps.
   

    

If everything else is correct, proceed with e-filing or printing your 1099 form. Refer to these guides after the steps above:

• Create and file 1099s with QuickBooks Online
• Print your 1099 and 1096 forms

I hope these details help sort out the situation with Box 7 on your 1099-NEC forms. If you have additional questions or need further support, feel free to click on the Reply button. We're committed to offering ongoing support.