Form 1099 is a tax form by IRS (Internal Revenue Service), which is required to file the information of the incomes paid, other than earnings from the employer. 1099 MISC specifically deals with the miscellaneous income, such as non-employee compensations, royalties, tax-exempt interest, etc. for businesses that pay to contract workers have to prepare this form. To download 1099 MISC form from the website of IRS, you can scroll down the article and follow the provided link.
Image: Some Important Points to Remember While Preparing 1099 MISC Forms in 2016
Using QuickBooks to Prepare 1099 MISC Forms
Preparing 1099 MISC form is slightly more complex than other income detail forms as its detail are often inconsistent and steadfast proofs are rarely available. So, gathering information for the form preparation takes some serious doing at times. If the business has been maintaining a constant track of the account payable for each independent vendor and contractor, then difficulties with the form preparations can be considerably reduced.
QuickBooks, one of the most reliable accounting software, provides a built-in option to prepare 1099 MISC form. With the use of software, chances of error and hassles are almost completely eradicated and filing is simplified as well. With better features of adding 1099 eligible vendors, QuickBooks automates a number of associated tasks. To prepare 1099 MISC form for your business, you can follow the following steps.
1. Enable Your Business for 1099-MISC Forms
- Click on ‘Edit’ in the toolbar and then choose ‘Preferences’.
- In ‘Preferences’ menu, move to the ‘Tax: 1099’ section and then switch to ‘Company Preferences’ tab.
- Select ‘Yes’ for the ‘Do you file 1099-MISC forms?’ and click ‘OK’ to save preferences. Now, QuickBooks will enable you to add the 1099-eligible vendors.
2. Adding 1099-eligible Vendor Information
- Go to ‘Vendor Center’ in the Vendor option on the toolbar. List of your existing vendors will appear.
- Double-click on the vendor, you wish to add information for and to edit the vendor details.
- Once the correct vendor details have been added, move to ‘Tax Settings’ section.
- Provide vendor tax ID and enable the ‘Vendor eligible for 1099’ checkbox. Then click ‘OK’ to save the updated information.
- Repeat this step for all the eligible vendors.
3. Preparing Your 1099 MISC
- Go back to ‘Tax: 1099’ section in ‘Preferences’ and click the provided option for ‘If you’re ready to prepare your 1099s, including mapping accounts’.
- Click on ‘Get Started’ button on the next screen to proceed with preparation.
- Select the vendors using checkboxes for 1099-eligible vendors and click on ‘Continue’ button.
- Verify the details (such as- Vendor Name, Tax ID Company Name, etc.) of the added vendors and click on ‘Continue’ button.
- You will reach ‘Map vendor payment account’ now. Click on ‘Sow all accounts’ and then choose the accounts that needs to be mapped with 1099 and which are to be omitted. Click on ‘Continue’ to proceed to next step.
- Review your payment for exclusion in the next step and click on ‘Continue’.
- Now you need to confirm 1099 entries for various vendors. You can double click on the vendor to view detailed information. Note that for the vendors not meeting the threshold requirement of IRS will show the payment as 0.00 (zero). After confirming the details, click on ‘Continue’ button.
- In the last step, choose between e-fling and print option to proceed.
4. Printing 1099s
- Click on ‘Print 1099s’ button to proceed with printing.
- Choose the calendar duration for the 1099 form to be printed and then click ‘OK’.
- Choose the vendors, you wish to print 1099s for and then click on ‘Print 1099’ button. You can check print preview for the same in this section.
- Choose the printer to print. Not that print command will require you to have 1099 paper available for printing.
- 1099 MISC Form | IRS
- Instructions for 1099-MISC Form | IRS
- Intuit QuickBooks Payroll – Set Up a Vendor and Print 1099/1096 Forms
- What If I Have to Issue a 1099 Form? | efile
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