Setting up for 1099s

If you work with vendors or subcontractors to whom you send 1099-MISC forms, you can set up QuickBooks to track all 1099-related payments to each vendor.

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.

To set up for 1099s:

  1. Choose QuickBooks > Preferences and click 1099s and set your 1099 preferences.
  2. Close the Preferences window.
  3. Choose Lists > Vendors.
  4. For each 1099 vendor, double-click the vendor's name to edit it.
  5. Click the Additional Info tab.
  6. Fill in the Tax ID field. (If the vendor is a sole proprietor, enter the vendor's social security number. If the vendor is not a sole proprietor, enter the vendor's nine-digit tax identification number.)
  7. Select the “Vendor eligible for 1099” checkbox.

What's next

Once you've associated the appropriate accounts with each 1099 category and selected the “Vendor eligible for 1099” checkbox for the relevant vendors, you don't need to do any more setup tasks. Each time you make a payment to a 1099 vendor, QuickBooks automatically adds the amount to the total you must report on the vendor's 1099-MISC form.

You can keep tabs on your 1099-related payments by creating 1099 reports. When it's time to print your 1099-MISC forms, you can print them with just a few clicks of the mouse. For details, see these topics: