QuickBooks software is the first choice of small and mid-sized business owners when it comes to accounting and bookkeeping. With the help of the advanced accounting software, business owners and accountants can handle and manage some of the most complicated tasks with utmost ease. But many a times they have to face some errors and issues that causes them obstruction of work. The software may malfunction, slow down, or temporarily stop responding to the user’s command. QuickBooks errors may show up anytime, for example, while downloading the software, updating or upgrading it, opening a file, during 1099 forms preparations, etc. To learn further about 1099 form preparation, make sure to read this segment carefully till the end, or you can also reach out to our technical support team at +1-844-964-2960, and we will provide you with immediate support and assistance.
Read Also: How to become QuickBooks certified?
Most Common 1099 Issues & their Solutions
Here are some of the most common issues with 1099 forms preparations and their solutions:
Issue: 1099 doesn’t show the correct amount
Solution: Here is what you can do if you face an issue where 1099 does not display the correct amount during preparations:
- In all cases, the payments must either meet or exceed the threshold for the box. When you are on the Prepare 1099s screen, you can find the dollar amount parentheses under the Box number at the top of the column at the top of the Preview 1099 and 1096 Information section. Ensure that these sums exceed the thresholds for the box.
- Check if the correct Tax Year is chosen in the Preview 1099 and 1096 Information section. Upon opening the Prepare 1099-MISC Forms screen, you will find a drop-down menu for Tax Year within Company Information box.
- In case this is a bill payment, make sure that it is attached to the bill, otherwise, you can amend it by following the given steps:
- Choose the Plus icon on the Toolbar.
- Select Pay Bills under vendor.
- Click the Filter drop-down.
- Select All for Payee and Location and click on Apply.
- Check the correct bill. In case the payment is outstanding, you will find the full payment amount displayed in the Credits column, leaving the rest of the amount in the Open Balance column. Adjust the sum, as required, in the Payment column – for example, if you want to apply the credit, you can change the Payment amount to 0.)
- Choose Save (or Save and close).
Note: If you still see the incorrect information, re-certify that the payments were assigned correctly to a vendor and not to an employee.
In case vendor was paid by credit card – 1099K form will have their reports submitted by the payment processor.
Issue: 1099 reports show an amount that is lesser than what you’ve calculated
Solution: Your 1099 can at times display an amount less than given to your vendor if you recorded the vendor payments to income or equity accounts, for these two sorts of accounts have no flow to 1099 totals. It requires payments to record or edit to expense-type accounts, otherwise you can make use of an asset or liability account; though, if you want to keep an account other than an expense account, you must consult your accountant first.
The accounts shall also be assigned for your 1099-MISC forms. For more and detailed information, you can check Assign accounts to 1099-MISC categories for ways on assigning 1099 accounts.
See Also: How to record an opening balance in QuickBooks desktop?
Issue: 1099 vendor is not there on the list when preparing 1099s
Solution: Here, we have sorted a few things to track vendor payments right in the Prepare 1099s screen:
- You’ve already chosen the vendor as a 1099 vendor.
- You’re tracking these payments to the vendor in an account related with a box from the 1099-MISC form.
See 1099 E-File Service: QuickBooks Online setup, troubleshooting, & FAQs for setup steps.
If you’re uncertain what accounts to assign – you can run a Transaction List by Vendor report.
- Select Reports from the left hand side menu.
- In the search bar, type Transaction List and select Transaction List by Vendor.
- Choose Customize option.
- Now, set the Report period to Last Year/ Last Calendar Year.
- Navigate to the Rows/Columns section and choose the Change columns link and put check the Split box.
- Next, go to the Filter section.
- Check the Vendor box and select 1099 vendors who are in question from the drop-down.
- Click on Run report.
- Find out what accounts the vendor’s transactions were tied to under the Splits column. In case the word -SPLIT- is there, select the transaction to see details on what accounts were affected.
- If you come across a Bill Payment, check the Bill and find out the affected expense accounts.
1099 form is misaligned
If the bottom half of your 1099 form may be misaligned or if you have other issues with 1099 form alignment, see Set up printing alignment for 1099 Tax Forms.
Read Also: How to Fix QuickBooks Error Code 6147, 0?
Issue: Print 1099 for a vendor who doesn’t meet the threshold
Solution: You can manually print 1099 for a vendor who doesn’t to meet the threshold. That can be done by running reports as well as filling in the form by hand. You can’t override the system and have QuickBooks Online print a 1099 for a vendor not meeting the threshold.
To access and view the 1099 Detail Report:
- Select Reports From the left menu.
- Type 1099 in the search bar and hit enter.
- Select 1099 Transaction Detail Report.
- Now, set the report date range to Last (Calendar) Year.
- Use filter to choose from lesser data on the report to a certain 1099 vendor or 1099 box.
- Select Run report.
You may also like: How to Fix QuickBooks Error Code 6144 82?
Winding Up!
This blog post consists of almost all the major 1099 forms preparations and their solutions. If you need assistance in regards to 1099 or any other QuickBooks related issue, you can call +1-844-964-2960 and speak to our 24×7 QuickBooks Payroll Support experts.
FAQs Related to 1099 form Preparations in QuickBooks
To correct type 1 errors, file the correct form with the correct amount, code, checkbox, name or address, and further check the CORRECTED box. You now have to submit the corrected 1099 form to the recipient and prepare the red Copy A to serve to the IRS with the form 1096 transmittal if paper filing.
In order to order official IRS information returns, which include a scannable Copy A for filing with the IRS and all other applicable copies of the form, you can visit the official website.
You can do this by:
1. Move to the reports menu and further choose vendors and payables.
2. You now have to choose 1099 summary
3. Once done with that, choose all allowed accounts.
4. Followed by, finding the account and make it a 1099 account.
5. To show these transactions on 1099 reports and forms, select the right option.
6. Now, close the 1099 detail report.
You can prepare your 1099s in QuickBooks at no extra charge. In case you choose 1099 E-file service, then Intuit will e-file your federal 1099 information with the IRS, and then print and mail a copy directly to the contractors.
Read Also:
Steps to resolve QuickBooks error 6007
