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.

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9 Responses to 1099’S FOR QUICKBOOKS 2012

  1. Bill says:

    I appreciate this helpful info but, have another question. I’ll be sending approx 250 1099 for bus. I see where I can file electronically the Copy A (Fed) & Copy 1 (My State), which I’ll have to do. I will however have to mail out a Copy B to (recipient).

    My QB is set to print 2 venders per page. I would assume I can set a print field/perimeter to print one vender per page but, have not explored that yet. I have not found a way to buy only Copy B forms; I see packages that include all forms and I only need B to mail out.

    Any advice would be helpful.

  2. Phoebe says:

    Help: I’m okay until step 3. One paycheck includes a reimbursement for office supplies which is correctly (I think) charted to the office supplies account on the check and invoice.

    How to fix this? Did I need to write a separate check to the vendor instead of putting the reimbursement on the same check?

    Is there a fix?

  3. Hi Phoebe –
    I’m guessing that your office supplies has been mapped as a 1099 account. Depending on what else is hitting your office supplies you can most likely remove this from your 1099 mapped accounts (Step 3). Depends on which version of QB you have as to the fix. The newer versions, at step 3, you simply choose to either omit from 1099 or select the box (normally box 7 for 1099 misc). Older versions of QB, try Edit>Preferences>Company, 1099, and Box 7, then select multiple and pick the necessary accounts.

  4. Pat Jacobs says:

    I followed your instructions but still can’t map an account. I am using QB 2013 for the first time. All my accounts are showing except one which I need to map before I can do my 1099’s. I clicked on “Show all Accounts” highlighted Legal, which I need to add, used the drop menu to select correct box on 1099 and then said to save and close since I was unable to use “Multiple Accounts” as I did in the past. I then went out of the system, restarted computer and when I went back it still was not on the page “Map vendor payment accounts”. I did this multiple times and don’t know what else to do. Can you help???

  5. Shouldn’t be any reason to restart computer. Just Save & Close. Works for me, so not sure what’s going on. PC or mac?

  6. doug rhoades says:

    I follow all of these steps but in Step 3 it seems like my “Omit” is not working. For example my company covers rental car expenses for some vendors when on job sites. If they submit the receipt we reimburse them. That reimbursement is showing up as a “Travel” category and I want to omit from the 1099. I select Omit but it still shows up.

    Any ideas?

  7. Hi Doug –

    Without actually seeing the situation, I’m guessing.

    There are 2 ways expenses hit the chart of accounts. One is through Items, which have to appear on invoices and may or may not be used in bills and other expenses, and then just hitting the account directly. You might want to consider using one travel expense/item when it’s regular travel and a different one for reimbursement. You can look at the blog I did on Ending Job Cost Frustration in Aug 2012 or the series I did on Items in Aug of 2010.

    You might also try closing out of QB and then going back in and starting the wizard again.

  8. Judy says:

    I can get the detail summary list of vendors needing 1099, but when the wizard prompts me to confirm 1099 entries, none show up, I see them on the report stating 1099 Detail Report.. but cannot get the next step. If I try to print, it says there are no vendors…??????

  9. Hi Judy –
    In one of the first screens of the 1099 Wizard, QB asks you to select your vendors. Do they show up there? Be sure you have them checked. I would also be sure you have the acocunts mapped where you paid these vendors, and I would be sure you have the latest patch for the version of QB you are using. It’s R12 for 2012 and R5 for 2013. Pressing F2 in QB will tell you which release patch you have. Also, I would check to see how you paid these vendors. If you paid them paypal or credit card, you do not need to send them a 1099.

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