‘vendor eligible for 1099’ = no?

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Question:

Using QB Pro 2011, I need to generate a 1099 for my vendor/contractor. I take step 1 in the 1099 wizard but the “eligible for 1099 = no” shows in the row for my vendor. How to I get my vendor 1099 eligible= “yes”?

Answer:

Set up Vendor 1099

From the Vendors menu, choose Vendor Center.

1.   Right-click the vendor you want to change to a 1099 vendor, and click Edit Vendor.

2.   On the Address Info tab, make sure:

o    The vendor’s legal name appears in the First Name, M.I., and Last Name fields.

o    The vendor’s address contains the two-letter state abbreviation and the zip code.

3.   Click the Additional Info tab.

4.   Enter the vendor’s tax ID number.

If the vendor is a sole proprietor, enter the vendor’s Social Security number. Otherwise, enter the vendor’s nine-digit tax identification number.

5.   Click the Vendor eligible for 1099 checkbox.

If you don’t see this checkbox, you need to set up QuickBooks for 1099 tracking (see below for further steps).

6.   Click OK.

Set up QuickBooks for 1099 tracking

  • Go to the Edit menu and click Preferences.
  • In the Preferences window, click Tax: 1099 in the list on the left
  • Click the Company Preferences tab.
  • For the “Do you file 1099-MISC forms?” option, select Yes.

 

  • Click the link to map accounts, and assign your accounts to the 1099 boxes. T
  • Then click OK.

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