Okay as promised here’s the article for 1099-MISC using QuickBooks 2012. Let me give you the steps first then follow up with more detail and screen captures.
1. Select your 1099s vendors
2. Verify vendor information, i.e. that you have the correct address and tax ID
3. Map the accounts that you used to pay your various 1099s vendors
4. Review your vendor payments. Beginning in 2011 the IRS now requires you to EXclude any payments you made to your vendors by
a. credit card
b. debit card gift card
c. third-party payment networks such as PayPal.
5. Confirm your 1099-MISC entries
6. Choose your filing method — printing forms or E-filing
As you can see, they have given the Wizard a facelift. But don’t panic, the Wizard still walks you through. The Wizard will be a little different depending on whether this is the first time you are setting up 1099’s in QuickBooks or if you simply need to review and edit before filing. For the purposes of this article, I will be using screen captures for those who already have 1099 information setup in QuickBooks, but need to review and edit. I will admit there were a couple areas that threw me, but I will try to point those out to make it easier for you :-)
1 Review your Vendor List and select all those who need 1099’s.
Do take the time to review because most likely you have picked up some new Vendors in 2011 and you want to be sure that if they need a 1099, that you have them marked appropriately. This automatically assumes last year. Which is fine if it’s 2012 and you’re doing 2011 or it’s 2013 and you’re doing 2012. But, if you’re trying to review before year-end, then there are a couple other methods I would recommend – I’ll highlight one of them later in this article.
2 Make sure you have a Tax ID and complete address for each 1099 vendor
An Aside: If you have a large list of vendors, or you’re working on names in the current year, here’s another way to verify they are marked 1099 eligible, you have the Tax ID and address. Click on Lists>Add/Edit Multiple List Items, then select the vendor list and customize the columns so all the appropriate fields are easily seen and can be edited.
3 Map Vendor Payment Accounts
I will admit the mapping stage is what threw me the most. By default, QuickBooks shows only those accounts that are mapped for 1099’s. If you need to review or select others, then you can Show all accounts.
Another facet that threw me, but perhaps not you, is that when all the accounts are shown, they are listed alphabetically instead of the traditional accounting order in the Chart of Accounts. Some of you non- accountants may really like it, but I will admit I did not!
The next part that threw me was the statement Your settings do not match the current IRS thresholds. The fix is to click on Show IRS thresholds, then click on Reset as shown in this next screen capture.
4 IMPORTANT: This step is for the new IRS regulations
If you use credit cards or PayPal or some other third party network to pay some of your vendors on a regular basis or occasionally then you really need to pay attention to this particular step.
Click on View Included Payments and you will see the payments made by checks.
However many of you have PayPal set up as bank account in QuickBooks and when you make payments from PayPal then you may either have a PayPal transaction number for the check number or you may have left it blank. What QuickBooks is telling you to do here is to put the form of payment in the check number as shown below
Then when you click on View Excluded Payments, you’ll see your debit cards, gift cards, and PayPal. Here’s the PayPal check we “fixed” in the steps above. Credit cards don’t show in this report since QuickBooks is easily able to isolate those transactions.
5 Confirm your 1099 amounts
Notice you can look at other years, see a summary or detail report to help you verify these numbers.
6 Choose your filing method – print or e-file
For you “old-timers” like me, this process is different, but Intuit has really tried hard to make it as easy as possible. Let me know if you have any questions or problems.