NAK Bookkeeping

Using the 1099 feature in QuickBooks

Completing and sending Form 1099’s are an important part of the tax process at the end of the year as they are reminders to these vendors to include such payments on their tax returns. QuickBooks has a great feature which offers the ability to track payments to independent contractors or other vendors who need to receive 1099’s at year end. To turn on the 1099 feature in QuickBooks follow these steps:

QuickBooks Desktop version –

1. Go to the Edit menu at the top of the screen and click Preferences
2. In the Preferences window, click on Tax: 1099
3. Click on Company Preferences tab and choose the radio button for Yes to the question “Do you file 1099-MISC forms”
4. Save your change by clicking the OK button

Then, while setting up a new vendor, go to the Tax Settings tab and simply click the “Vendor eligible for 1099” radio button. It is important you have accurate data when setting up vendors to receive 1099’s so be sure that you have the following information when setting them up:

• Legal name of the vendor’s company or independent contractor
• Complete mailing address
• Vendor’s tax ID number or sole proprietors Social Security Number

Please note that when using QuickBooks Online, the 1099 feature is only available on the Plus version.