Verifying 1099 Information

To verify the accuracy of the amounts you'll be reporting to the IRS, you can create two reports: the 1099 report and the 1099 detail report.

Before you begin

Display the 1099-MISC Setup window and check the threshold for each amount you report to the IRS. If any of the threshold amounts have changed since you last printed 1099-MISC forms, enter the new amounts in the 1099-MISC Setup window. How to update the amounts

IRS changes starting with the 2011 tax year

For the 2011 tax year, some forms of payments from 1099-MISC will be reported on a new third-party form 1099-K. Find out what changes you need to make.

First, verify your 1099 vendors

  1. Choose Reports > Vendors & Payables > 1099 Summary. The vendors listed are the vendors for whom you selected the “Vendor eligible for 1099” checkbox in the New Vendor or Edit Vendor window.
  2. Check the report for missing 1099 vendors:
  3. If you found any missing 1099 vendors, set them up as 1099 vendors now. Use the Vendor Center and edit the vendor.

Second, verify your 1099 accounts

  1. Choose Reports > Vendors & Payables > 1099 Detail. This report should include ALL the vendors to whom you send 1099-MISC forms. For each vendor, the report lists the transactions QuickBooks used to calculate the total for each 1099 category. The accounts shown are the accounts you selected for tracking 1099-related payments in the 1099-MISC Setup window.
  2. Check the report for missing 1099 accounts:
  3. If you found any accounts that should be 1099 accounts, set them up now in the 1099-MISC Setup window. How to set up the accounts

Third, verify the amounts

  1. Return to the first report you created, the 1099 Summary. In the report buttonbar, click Only 1099 Vendors. This report should now include ALL the vendors to whom you send 1099-MISC forms, and it should represent ALL the accounts you use to track 1099-related payments. The report shows only amounts that are at or above the minimum you must report to the IRS.
  2. Check the report for amounts that are too low:
  3. For each low amount, do the following:
  4. As a final check, go back to the 1099 Summary report (the first report you created). Return the report to its original state by clicking Only 1099 Vendors, Only 1099 Accounts, and Use Thresholds in the report buttonbar. The report should list every vendor to whom you send 1099-MISC forms, and it should show the correct 1099 amounts for each vendor.