You can use QuickBooks to prepare and file your Form 1099-MISC with the IRS quickly and easily. Form 1099-MISC is an information tax form that you file with IRS when you pay $600 or more for goods or services from any individual or entity in a year. It is important to file the 1099-MISC with the IRS; you can be fined up to $100 per return for the failure to file any 1099-MISC. If you use QuickBooks, you can prepare and file all 1099-MISC forms when they are due in January for the previous year.
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Map Expense Accounts in QuickBooks for 1099 Preparation
You will need to map your expense accounts in QuickBooks for 1099 preparation.
1. Go to the Edit menu and select Preferences.
2. Select Tax:1099 from the right pane.
3. Then, select Company Preferences tab.
4. Select Yes when prompted with whether you want to file 1099-MISC forms.
5. Map your chart of accounts to the different line items on the 1099-MISC.
Example: You can select the account in the drop down box for Box 1: Rents. If you only have one account for this where you book all your rental expenses, you would then select that account from the chart of account.
Practical consideration: When selecting this for Box 7: Nonemployee Compensation, you will probably need to map multiple accounts.
a. Select Multiple Accounts in the drop-down menu.
b. Go to the appropriate account, such as legal, accounting, consulting, or so on
c. Set your filingthresholds according to the IRS instructions.
d. Click OK to save your work.
Practical consideration: You should visit www.irs.gov for instructions on preparing and filing the 1099-MISC forms if you are not familiar with this process.
How to View Vendors to Receive a 1099 in QuickBooks
Now that have successfully mapped your accounts, QuickBooks Online will automatically be able to select which vendors need 1099-MISC forms based on which account you book their expenses to and the threshold you entered. You should still review which vendors will receive 1099-MISC forms to ensure that you are including all vendors.
To review the vendors for which QuickBooks will send a 1099:
1. Go to the Vendors menu and select Print/E-file 1099s. Click on the box under 1. Review your 1099 vendors.
2. A list of all vendors will be displayed with a column that shows if they are marked “yes” or “no” for receiving a 1099.
3. Review this list to make sure all your vendors are accurately included or excluded from receiving a 1099-MISC.
4. To change a specific vendor, just double click on the vendor from this report.
5. Click on the Additional Info tab and select (or unselect) the checkbox for Vendor eligible for 1099.
6. Once you are satisfied with you changes close the list and return to the 1099 and 1096 Wizard screen.
Review 1099 Forms Prior to Sending
Review the report that shows all vendors that are marked for a 1099 with their current year information for each type (or Box) of income to be reported on the 1099-MISC for accuracy.
1. From the 1099 and 1096 Wizard screen, click on the box under
2. Review this report for accuracy.
3. Review your 1099 data.
Practical consideration: You should pay special attention to the Uncategorized column. Any amount in this column has been placed in an account that was not mapped.
Practical consideration: You should check to make sure that each recipient has a tax ID number associated with it.
How to File 1099 Forms with QuickBooks
File your 1099-MISC forms.
You can file your QuickBooks you may choose to file electronically or with paper forms.
To file the 1099-MISC forms electronically:
1. Go to the E-file 1099s section and decide when to send the 1099s to the vendors, and when to e-file them with the IRS.
2. Enter your credit card information and pay for the service.
To print a paper copy of 1099-MISC forms:
3. Click on any one of the recipients and click Print Form.
File 1099-MISC Forms to Avoid Costly Penalties
You should be able to use QuickBooks to prepare your 1099-MISC. You should be able to set up, prepare, and file your 1099-Forms quickly and easily. Considering how easy it is to prepare and file these forms, it is highly recommended considering the potential penalty from the IRS for failing to file these forms. Remember, the failure to file each 1099-MISC form carries with it the potential for a $100 penalty from the IRS.
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Article source : - https://www.thebalance.com/how-to-prepare-your-1099-misc-forms-with-quickbooks-14090