Using the 1099 Wizard to create 1099s

If you’re reading this, it’s probably tax time and you’ve got some Form 1099-MISCs to prepare for subcontractors you’ve paid this year.

Important: You can only run the 1099 wizard in January and February, when it’s time to prepare your 1099s and send them to the IRS and your contractors.

First, the good news: you might not need to create 1099s for your contractors after all. If you paid your contractors using credit cards, debit cards, PayPal, Merchant Services, or similar payment network services, you’re off the hook. You don’t have to create 1099-MISCs for these contractors. If this information doesn’t apply to you, keep reading.

Here’s what you need to do to use the 1099 Wizard:

Step 1: Select your 1099 vendors and review your 1099 vendor’s information

    1. Choose Vendors > 1099s > Print or E-File 1099s/1096…
    2. Click Get Started.
    3. Verify your 1099 vendor eligibility settings.

You need to be sure all the vendors you need to print a 1099 for are set up that way in QuickBooks. On this window, QuickBooks lists all your vendors. If you’ve set up a vendor as a 1099 vendor in the Vendor Center, you’ll see a check next to that vendor’s name on this window.

4. If you see any vendor that you need to print a 1099 for who doesn’t have a check mark, select the checkbox for that vendor.

5. Review each 1099 vendor’s information to be sure it’s current. If you need to correct anything, double-click the vendor name. The Vendor window opens, so  you can make any changes you need.

Important: Do you work with vendors in New Jersey or Wisconsin? If so, be sure to fill in the state and payer’s state number!

video icon Watch a short video showing how this works.

6. Click Next when you’re done.

Step 2: Map your accounts

If you’ve printed 1099s for vendors in the past, this window should look familiar. It’s your 1099s preferences screen. This is where you set up which accounts you’re using for which box on the 1099 form.

  1. Review which QuickBooks accounts you’ve assigned to which boxes on your tax form, and the thresholds.
  2. Make any changes you need to.
  3. If you need to take a look at the accounts you have been using with your 1099 vendors, click View 1099 Report (in the upper left), to look at a list of accounts you’ve associated with payments to these vendors.
  4. Click Next when you’re done.

Step 3: Review and adjust check payments 

On this window, you need to be sure you have all your payments to 1099 vendors identified correctly.

Previously, you entered credit card payments as credit card payments, so QuickBooks knows about them. What we’re trying to do here is make sure that any payment with a debit card or PayPal, that you may have recorded as a check, includes enough detail. This ensures that QuickBooks knows to exclude it from the 1099-MISC form as the IRS now requires.

Here’s an example:  Say you paid a subcontractor with your business’s debit card. When you entered that payment in QuickBooks, you entered it as a check since it was a withdrawal from your checking account. That’s all good.

However, the problem is that now the IRS doesn’t want you to report this payment on the 1099-MISC form. Now, you need to go back to that check entry and change the check number so that QuickBooks knows it was a debit card payment.

What do I need to do?

  1. Click View Included Payments to see a list of all your check payments to 1099 vendors.
  2. Review this list to see if there are any payments that should be identified as a debit card, or PayPal payment. This list shows everything that is currently listed as  included  on your 1099s. We need to  identify the transactions that shouldn’t be here .
  3. If you see any transactions that were made with a debit card or gift card, or you see any PayPal payments, click the transaction to open it in the Create Check window. In the Check Number field, add an indicator that will tell QuickBooks what kind of payment this is. You must use one or more of these terms:
    Debit Debitcard DBT
    DBT card Dcard Debit cd
    Visa Masterc MC
    Mcard Chase Discover
    Diners Paypal
  4. Now, click View Excluded Payments. This list is for you to review the work you just did. The list shows you all the transactions you’ve identified as payments to 1099 vendors using debit cards and PayPal. These payments should be  excluded  from your 1099-MISC forms. If you need to make any changes, click the transaction to open it and make your changes.
  5. Click Next when you’ve finished making sure the list of included payments is correct.

Step 4: Confirm your 1099 entries

OK, you’re probably tired of reviewing and confirming, but it’s important to make sure that everything is right for the IRS. So, hang in there for this one last window.

  1. Review the list of 1099 vendors and the payments you’ve made to them. Here’s what each column means:
    • Box 7 Nonemployee Compensation: Total payment amount associated with account(s) you matched to Box 7 back at step 2.
    • Box 16 State Tax Witheld: Total payment amount associated with account(s) you matched to Box 16 back at step 2.
    • Other 1099 Boxes: Total payment amount associated with account(s) you matched to any boxes other than 7 or 16 back at step 2.
    • Total Included on 1099-MISC: Total payment amount that will be reported on the vendor’s 1099-MISC form, including Box 7 and any other Boxes with amounts to report.
    • Total Unmapped: Total payment amount to vendors that is not associated with any of the 1099 boxes.
    • Total Paid: Total payment amount you have made to the vendor. If you want to check your math, here’s what should add up: Total Paid = Total Included + Total Unmapped
  2. Does everything look OK? If so, you’re ready to click Next.

Additional state information

New Jersey:

Did you report $1000 or more in Box 7? Or did you withhold any state income tax from payments reported in Box 7? If you answered yes to either of these questions, then you are required to file a Form 1099-MISC to the state of New Jersey.

New Jersey requires you to have a New Jersey withholding ID. Your ID should be the abbreviation for New Jersey (NJ) and your 12 digit NJ withholding ID – Example: NJ 999-999-999/999

Get more information on filing 1099s to the state of New Jersey. You can also contact the New Jersey Department of Treasury at 609-292-6748.


First, did you pay a 1099 contractor for a service or work done in Wisconsin? Second, did you pay the contractor $600 or more for this work or service?

If you answered yes to both these questions, then you are required to file a Form 1099-MISC to the state of Wisconsin.

The state of Wisconsin requires that boxes 16 and 17 are completed on Form 1099-MISC. You may be charged $10 for each 1099 form that is missing information in boxes 16 and 17.

Here’s how to be compliant:

  • If you withheld any Wisconsin state income tax from a payment you made to your contractor or vendor, you are required to have a Wisconsin withholding ID.
  • Your ID should be the abbreviation for Wisconsin (WI) and your 15 digit WI withholding ID – Example: WI 999999999999999
  • If you did not withhold state income tax and do not have any other requirement to have a Wisconsin withholding ID, then enter WI 036888888888801

For more information, please contact the Wisconsin Department of Revenue .

Step 5: File your forms

Now you’re ready to file your 1099 forms!

You have two options for filing your 1099s:

  1. Print your formsClick Print 1099s to print your forms when you’re ready. You’ll see a new window appear, allowing you to select which 1099s or 1096s that you would like to print. Just a reminder: You can’t print your forms on plain paper. Instead, you need preprinted forms to print on, and QuickBooks will fill in the information on the official forms. Order those forms from Intuit if needed.
  2. E-file your forms: Choose this option if you’d like to E-file your 1099s directly to the IRS. This service will also automatically print and mail the 1099 forms to their recipients.

Here’s how to use the service:

    1. To begin, click E-file 1099s.
    2. Select the 1099s that you want to E-file, using the checkboxes on the left-hand side.
    3. When you’re ready, click Upload Forms.
    4. You’ll be prompted to sign into Intuit’s 1099 E-File Service and review your forms.
    5. When you’re finished, a green checkmark and the words “Ready To E-File” will appear next to each form.
    6. Click “E-File selected” and fill out your payment information to complete the process.

That’s it!

Thanks for hanging in there through this process.

If you have any questions or concerns, the best place to go is our Community. There are a lot of other users, as well as ProAdvisors and Intuit employees, who are ready to help.

You can also post your own question to the QuickBooks for Mac community.