BA Harris LLP

Quickbooks and 1099s

Published on Friday, January 28, 2011

You can use the 1099 feature in QuickBooks to create a summary report of the vendors that are eligible for Form 1099-MISC. There are several steps that are necessary for this report to generate the correct information.

First turn on the 1099 feature by going to the preferences menu. In this menu there is a “tax:1099” option and under “company preferences” there is yes/no prompt to turn on/off 1099 tracking. Secondly, the accounts you use in Quickbooks have to be mapped to the correct box on the 1099’s. Directly under the prompt to turn 1099 tracking on/off there is a table on how to map your accounts for each box on the 1099. Here you want to link the 1099 categories to the Quickbooks accounts you track them in. You can link multiple accounts to one box on the 1099 by choosing multiple accounts at the top of the drop down menu and then checking the accounts that apply. Lastly, the vendors eligible for 1099’s need to have the box checked in their profile that says they are eligible for a 1099. Remember you will need a tax identification number and current address in the profile as well. With this all being said, once the set up is done a simple report can be generated each year that summarizes all of the information to go on the 1099’s and filing becomes a simple transfer of data to the form.

Debby Link, CPA

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