QuickBooks allows you to create and file federal 1099s using the data you have in your account. 1099s are tax forms you must submit to the IRS. They are required for contractors who pay in the form of direct deposit, cash or by check. Remember that you’ll need to file a 1099-NEC form for each non-employee who you paid more than $600 in cash, check or direct deposit in the preceding year. Also, you must complete a 1099 form if you’ve kept all federal taxes exempted from the back-up withholding rules. This blog will take your through QuickBooks’ 1099 Wizard and how it performs the entire process of preparing and filing tax forms for 1099.
For more details on this topic, you could definitely contact the team of QuickBooks Pros in 1-888-704-1357.
Pre-Requisites Before You Prepare And File 1099s With QuickBooks Desktop
It is important to keep in mind certain points prior to beginning the process. It is essential to keep track of these things as they’ll aid you in starting working through the process. The additional information is beneficial and will result in more informed choices before you start the process. Knowing these aspects will also help to reduce confusion and give you greater clarity to the process. Check out the numbered points that follow:
IRS is not able to permit electronically-generated payments to be listed in the 1099-MISC or 1099NEC forms. It is not required to report electronic payments that are comprised of debit card, PayPal payment, gift card, etc. Electronic payment companies will are able to report these payments and you don’t need to do anything.
1099s have to be sent to contractors and IRS on or before the 1st of February. Therefore, ensure that you file electronically before the 30th of January. This will ensure that you have your contractors before the 1st of February.
After you’ve learned the basic requirements, it’s better to start the actual procedure.
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How Do I Use QuickBooks 1099 Wizard To E-File 1099?
It is necessary to follow the steps necessary to e-file 1099 using the assistance of the QuickBooks 1099 Wizard. It’s not difficult to file 1099 as long as you are familiar with the steps. If you do it correctly you will experience an effortless process. Then, follow the steps in the following order:
Set Up 1099 Accounts
There are a variety of categories of cash you could have made to contractors. So, you may have to file 1099 -MISC and 1099 -NEC in the event that you’ve made multiple kinds of cash payments to contractors. It could also be necessary to change your account in order to accommodate each of these kinds of payments. This is determined by selection of the box you pick for the payments you make to employees who are not employees.
Update QuickBooks
After completing the steps mentioned above It is recommended to upgrade QuickBooks to the most recent version. There are a variety of ways for updating QuickBooks to the latest version.
- Create Your 1099s
- Here is the point where the real process starts. Follow the steps below to create 1099s with QuickBooks 1099 Wizard: QuickBooks 1099 Wizard
- Go to Vendors, select 1099 Forms, and finally Print/E-file 1099 forms.
- Now, make backups.
- Click Get Started to create the 1099 form you want to make.
- Select vendors that require an 1099 form. Then press continue.
- Verify the vendor’s information. Edit any information by double-clicking it. Choose Continue.
- Then, you can map the accounts of payment to the vendor. Select the drop-down menu in the Apply Payments to This 1099 box. Select the account that you want to apply with the payment. The gray boxes represent an account that is mapped. Then, select Continue when you are done.
- Select View Included Payouts or View Excluded payments to view the full report of the details of your payments for exclusions. Choose Continue.
- Then, look over the names of the companies and the amounts that you’re planning to submit. Choose Continue.
- You are now able to download or file your 1099 electronically. Follow the steps or procedures listed below if you want to file your 1099 electronically. Be aware that the steps for creating 1099 differ for Mac.
- Choose e-files to upload your information to your 1099 tax account.
- E-File 1099
- This is the last list of steps you’ll need to complete in order to file 1099 electronically. Take the steps listed in the following steps:
- Select the Vendor’s name, or the Edit to change any details.
- Fill in the the appropriate state boxes in order to file 1099s with your state.
- Choose the Vendors . Then click Next. Select the Vendors in the column with the date. Choose the method you wish to send.
- Click next or calculate tax 1099.com Fee to view your total filing fees.
- Enter the payment information and select pay & Submit to e-file.
- You’ll have repeat the steps if you want to generate both 1099-NEC and 1099-MISC.
- You can also check the status once you’ve sent your 1099s with the IRS.
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Conclusion
QuickBooks 1099 Wizard allows users to create 1099s. If you’ve completed all the steps above and are in good shape, there shouldn’t be any issue to file electronically 1099. After reading the entire information it is now easy to follow the steps outlined in this blog post and effectively submit 1099.
To find out more regarding the procedure, get in touch with our Team who are QuickBooks Professionals at 1-888-704-1357.