For a seamless experience when filing a 1099 in QuickBooks Desktop, make sure to verify that all your vendors are active and properly set up for 1099 tracking, Charlotte. Let’s dive into this topic to expertly guide you through your vendors’ 1099 filings.
If a 1099 vendor isn't appearing on your list when you begin generating 1099s, it's likely because they haven't been marked as active or eligible. To thoroughly check your vendors, here's how:
- From the Reports menu, click on Vendors & Payables.
- Select 1099 Summary and hit All vendors in the 1099 options dropdown.
- If there is a missing vendor, mark them as 1099-eligible.
a. In the Vendors menu, tick Vendor Center and double click the vendor's name.
b. Choose the Tax Settings tab and select the Vendor eligible for 1099 box.
c. Enter the Vendor Tax ID and remove the checkmark next to Vendor is Inactive, then click OK.
- If you have completed this, repeat steps 1 and 2. Then in the 1099 options drop-down menu, select 1099 Vendors.
After that, ensure your payments to the vendor exceed the annual $600 threshold, as only those paid above this amount qualify for a 1099. To identify vendors who did not meet this threshold, refer to Step 2 of this article for more details: Troubleshoot Missing Contractors or Wrong Amounts on 1099s.
Additionally, to effectively manage your vendor balances, you can learn how to make necessary adjustments. For a comprehensive guide on this process, please see this resource: Adjust the Current Balance for a Vendor.
Proper filing of your 1099s is essential for accurate tax reporting and minimizing the risk of penalties due to errors or omissions. Please let me know if you have further concerns, Charlotte. I'm here to ensure you have a top-notch experience with our Community support.