Generating 1099 Reports Via 2022 QuickBooks

Tax Season Tips 2022 QuickBooks

It’s tax season and below is a tip that I learned for QuickBooks.

Tax season is in full swing, and we wanted to share an accounting tip that we learned while using QuickBooks Desktop Pro Plus 2022. While preparing to generate our 1099 reports, I ran into a discrepancy with my numbers.

While running year-end 1099-NEC summary reports, we noticed that our vendor 1099 amounts were pulling the incorrect amount. Below we will explain why our 1099’s were pulling the wrong amounts and how to fix this issue.

When investigating the issue, it seems that QuickBooks Desktop Pro Plus 2022 has now made its check number block a live field. I use the check No. field to reference several different types of transactions:

  1. Write in the Check number if I am writing the vendor a check.
  2. Write in the word BillPay if I send the vendor a bill payment.
  3. Write in the word Debit if I am sending the vendor an ACH or recurring debit.

Go to your 1099 wizard to view your Excluded Payments. See below for details:

  • Vendors
  • Print/EFile 1099’s
  • Choose which form you are filing (1099-NEC or 1099-MISC) and click Get Started.
  • Click continue until you get to Review Payments for Exclusion
  • Click View Excluded Payments

We have been unable to get clarification from Intuit, so please understand the statements below are my own opinion. I cannot say if this is a glitch or intended by Intuit engineers, but either way, your vendor payments that have the word DEBIT typed in the Check number field will go to Excluded Payments. They are left off your 1099 report. The fix was simple, I just removed the word “DEBIT” and replaced it with “Draft”. The vendor payments are now showing on the 1099-NEC report.

Remember: When in doubt, always cross-reference your 1099 Vendor Report to the vendor’s issued payments in the Vendor Center. I am hopeful that this will help finance teams catch the errors before sending out erroneous 1099s. Hopefully, we can all keep our vendors happy and prevent IRS refiling fees.

Kim Lawrence is AISN’s Director of Finance.