Using the Updated 1099 Wizard

Purchasing the QuickBooks Assistance App for 2010-2011Managing the 2011 tax year 1099 changes manually

For tax year 2011 the IRS has changed the 1099-MISC reporting requirements.  If you have 1099 vendors, the IRS has made some changes that may affect you. Don’t panic! We’re here to help. (If you don’t have 1099 vendors, you don’t have to worry about any of this.)

The short version: if you’ve paid your vendors using credit cards, debit cards, PayPal, or similar payment services, this process will help you make sure that the 1099-MISC forms you create come out right. I’ve got some more information about the changes the IRS made over here.

See? Not so bad.

For QuickBooks 2012, we’ve updated QuickBooks to walk you through the process of making changes in your company file to be sure the right information gets reported on the right form. And for QuickBooks 2010 and 2011, we’ve created a for-purchase app that does the same thing.

Let’s get started

OK, enough talk, let’s start getting those 1099s done. First, you need to download and install the updated 1099 Wizard.

What do I need to do?

  1. Download the latest QuickBooks product update at QuickBooks > Check for QuickBooks Updates. The new 1099 Wizard is included in the update.
  2. To get started preparing your 1099s, go to one of the two access points to open the 1099 Wizard:
    Files > Print Forms > 1099s
    Vendors > Print 1099s/1096s

The 1099 Wizard will take you through the process of updating your 1099 vendor information to follow the new IRS regulations step by step. Keep reading—we’ll take you through each step in detail.

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

On the Select and Review your 1099 vendor’s information window, 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.

What do I need to do?

  1. Open the Select and Review your 1099 vendor’s information list.QuickBooks 1099 wizard 2011
  2. 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.
  3. 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.
  4. 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.

What do I need to do?

  1. Review your 1099 preferences to be sure they’re up-to-date.
  2. Make any changes you need to. If you need more detail about this window, click Help in the lower left corner.
    QuickBooks 1099 Accounts & Preferences
  3. If you need to take a look at the accounts you have been using with your 1099 vendors, click View 1099 Report, 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 

OK, now we are at the center of the IRS 1099 changes. As I said at the beginning of this article, the IRS now requires that the card company or third party payor report credit card, debit card, and Paypal payments to 1099 vendors on the 1099-K form. You do not report these payments on the 1099-MISC form. So on this window, you need to be sure you have all your payments to 1099 vendors identified correctly.

Because you’ve already entered credit card payments as credit card payments, QuickBooks knows about them. What we’re trying to do here is make sure any payment with a debit card or PayPal that you may have recorded as a check includes enough detail so 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.

But the problem is that now the IRS doesn’t want you to report this payment on the 1099-MISC form, so 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 view 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 transaction that debit card, gift card, or 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
    • Debitcar
    • 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’re done excluding transactions.QuickBooks 1099 wizard 2011

Step 4: Confirm your 1099 entries

OK, you’re probably tired now 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.

What do I need to do?

  1. Review the list of 1099 vendors and the payments you’ve made to them.Here’s what each column means:
    • Box 7: Total payment amount associated with Box 7 account(s)
    • 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
  1. Does everything look OK? If so, you’re ready to click Next.
    Confirm 1099 screen QuickBooks

Step 5: Print your forms

Whew! You’re done! Now you’re ready to print your 1099 forms.

Just a reminder: You can’t print your forms on plain paper. You need preprinted forms to print on, and QuickBooks will fill in the information on the official forms. You can order those forms from Intuit.

When you’re ready and you’ve got the forms in your printer tray, click Print 1099s to print your forms.

QuickBooks 1099 wizard 2011

That’s it!

Thanks for hanging in there through this process. I hope you do something nice for yourself after all of this.

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 hanging out there ready to help.




About Liz Hamill Scott

Liz Hamill Scott is the newest member of the QuickBooks for Mac team, but she's no stranger to QuickBooks. For the last few years, Liz has used QuickBooks for Mac to track the many expenses she incurs as a travel, food, and lifestyle writer. The author of The Imperfect Traveler's Guide to Traveling With Pain, five Moon Handbook travel guides to California and numerous magazine, newspaper, and blog articles, Liz loves advocating for travelers with hidden disabilities and takes the business of being a sole proprietor seriously. You can find Liz on the web at See all of Liz's articles

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