It is important for all employers to prepare 1099 tax forms. These forms are to be submitted by all employers to the IRS. Federal agencies such as the IRS, require you to fill out this tax form every year. All the wages received in cash and kind need to be reported on this tax form. Thus if you are figuring out “How do I run a 1099 report in Quickbooks”, then continue reading.
You also are required to enter sources of income from miscellaneous sources. This tax form also requires you to disclose the income for the current financial year.
This form can be filled and sent directly to the appropriate tax agency. With QuickBooks, users can easily transform the way they file taxes. QB Payroll can be used for purchasing tax forms along with envelopes. These tax forms can then be filled in and printed out by using the data recorded in QB. After this, users can mail the tax forms or file them online.
If you are planning to send a print out of the tax form to the IRS then make sure to print the form out with red ink. Any other color will be rejected by the IRS. The red ink makes it easier for them to scan the entire tax form. Also, recheck all the information filled on the tax forms as inaccurate information can attract hefty penalties.
Tax info required:
Above is the 1099 form. You can find a free copy on IRS’s website. Users need to fill in all the required information such as:
- Payer’s Name, Address along with your city or name of the town, state or province. Also, add the name of your country along with the ZIP code. Finally, add-in your phone number and you will be done.
- Payer’s Federal Identification Number
- Recipient’s identification number
- Street Address
- Account Number
- Healthcare and Medical Bills.
- Substitute expenses in lieu of interest
- Federal IT withheld
- Gross Proceeds etc.
After adding all the information, you can take a print out of this form and file the tax with IRS.
How do I run a 1099 report in QuickBooks?
You can create reports & financial statements that will help you in ascertaining the total value that is to be paid for the 1099 tax form. The reports can be created in detailed or summarized form. Also, you can use this data to fill in all the necessary fields in the 1099 form.
Steps to run a 1099 report in QuickBooks:
- Login to QuickBooks
- Select Vendors
- Click on Print/Efile 1099s. 1099 preparation wizard will appear. This wizard will guide you through the entire process of preparing this tax.
- Create the Vendor 1099 review report. Use it to tally all the data and numbers that you have entered on the forms. You can also view the mailing address of each vendor and edit it to reflect the latest contact details.
- Map all information to the 1099 form. You can select all the information from the general ledger account and chart of accounts. The selected information can then be used for creating the report. Here, you can match the boxes with the information that you want to be filled with them. All forms will be automatically filled with correct information.
- At this point, you can view all the information and ascertain this accuracy. This is one of the most important steps as users need to make sure that discrepancies in data are avoided. Any inaccuracy can lead to heavy fines and even a lawsuit. For ascertaining the accuracy of this data, select all vendors and boxes that you want the information for.
- Click on show report. From here, you can easily view a summarized view of the entire 1099 form. Thereafter, users can view the detailed view of this report. The detailed view has comprehensive information about each and every vendor whom you selected in the aforementioned steps.
Recheck 1099 report for any corrections.
After preparing the entire report, users recheck the information once again. This can be done by following the steps provided below:
- Click on reports. This option is provided on the left navigation menu.
- Select Vendors and Payables.
- Select QuickBooks 1099 Details Report.
- Enter all the necessary information for the report.
- If there are vendors who should receive this form but haven’t been selected, then select those vendors.
- Click on Only 1099 Vendors.
- Select All Allowed Accounts.
- A new version of the 1099 report will be created. This report can then be used for verifying the original 1099 tax form and report.
Filing tax Online:
- Select ‘Use Intuit 1099 E-File Service’
- Follow the instructions provided.
- Upload the forms.
- Click on File tax.
All 1099 forms will be submitted online to the IRS. You can also make payments online for the same.
Filing tax 1099 online does have its own set of perks. Firstly, users do not need to file form 1096 if they electronically file 1099 tax form. Also, there are fewer chances of getting it misplaced, since you are submitting it directly to IRS with no middle man involved.
Filing tax Offline
Users who want to file taxes offline, need to submit tax form 1096 along with their 1099s. This complicates the process as users need to fill in both the forms, get their print outs and mail them to the appropriate federal agency.
Form 1096: This form is necessary for all tax-exempt organizations. It contains various information about the organization such as Federal Income Tax Withheld and Total Amount reported with This Form 1096. Also, users need to mark all the tax forms that they have submitted to the IRS.
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