How to create and print a 1099-NEC form in QuickBooks Desktop
This article addresses the basics of the a 1099-NEC creation and printing process in QuickBooks Desktop.
So, to begin:
- Go to your vendors menu at the top>1099 Forms>Print/E-file 1099 forms.
- Click on “Get Started” underneath the Form 1099-NEC option.
- Select your vendors whom you want to process a 1099-NEC form for, then click Continue.
- On the next screen, verify each vendor’s profile information. Most importantly, the:
- Company Name
- Address
- Tax ID
- On the next screen, verify the proper mappings from your pertinent accounts (in the Chart of Accounts; mainly the expense and any balance sheet type of accounts where you most likely booked your transactions each time you paid your vendors) to the proper box that is to contain the reportable payments information on the 1099-NEC form.
- Example: If you paid all of your contractors from “Subcontractors” and “Advertising” expense accounts in your books, then you would map these same two expense accounts to one of the reportable boxes on the 1099-NEC form, most likely it will be “NEC Box 1: Nonemployee Compensation” box.
- You can also just checkmark the option on the lower left-hand corner “Report all payments in Box 1”. However, be careful as sometimes you may not want to report all payments made to your vendors, such as for direct reimbursements or any loans (to be paid back).
- On the next screen, there are two options:
- View included payments – verify that all payments listed here are indeed the ones you want to report on behalf of your contractors.
- View excluded payments – this one is important; be sure you don’t accidentally leave any pertinent and reportable payments out of the 1099-NEC form.
- On the next screen, this is a verification to ensure that your selections during the 1099 wizard process thus far, are indeed correct. So, verify the following:
- Vendor Name
- Tax ID
- Box 1: Non employee Compensation
- Total Unmapped Payments (these unmapped payments will NOT be reported on the 1099-NEC form).
- On the next screen, select to Print Form 1099-NEC
- When you get to the pop-up window that states “Select vendors to print Form 1099-NEC/1096, also review this information listed here as well. QuickBooks is just confirming here that each vendor does or does not indeed have some sort of Valid ID and Valid Address listed in the correct fields in the vendor’s profile that will show on the 1099-NEC form.
- I would suggest you first click on the button “Preview 1099” at the top; this will be exactly what is printed on each vendor’s tax form. Be sure this information will print correctly first before actually commencing the printing process.
- When you are ready to print the 1099-NEC forms, click on Print 1099.
- When finished printing, ALWAYS be sure to review each and every 1099-NEC form to ensure all fields on each form do indeed present the information correctly. A common error to miss here is the layout of the vendor’s address, so be sure to especially verify this information before mailing out via the post office.
Note: AccuraBooks is a bookkeeping firm only, so please consult with your C.P.A. for verification and clarification about the contents of this article.