Assign the expense account you used to pay the contractor to an appropriate IRS-defined box.
Most likely, you’ll use the Non-Employee Compensation box. Select the account you used when you paid your 1099 worker. Remember when we told you to make a note of the account you used when creating the expense for this vendor in Step 3? This is the same account you’re assigning to an IRS box here. Select any accounts you used when creating Expenses for vendors you’re creating a 1099 for. Be sure you don’t include any asset accounts. If you have any questions about assigning these accounts, check with your accountant.