Are you ready for the new 1099-NEC? What are the changes for the 2020 tax year…

This video is for setting up and filing the 1099-NEC and 1099-Misc for QuickBooks Desktop Users (QuickBooks Pro, Premier)

QB Online Users 1099-NEC training: https://canduskampfer.com/1099-nec-and-1099-misc-online-users/

What are the changes for 2020 tax year?​

New for 2020, nonemployee compensation has been removed from 1099-MISC and given its own form, the 1099-NEC. 

Amounts formerly reported in Box 7 of 1099-MISC in 2019 and prior years should now be reported in Box 1 of 1099-NEC.

The 1099-MISC also has a new payment type called nonqualified deferred compensation, for deferred compensation that does not meet section 409A requirements.

 

What is the difference between 1099-NEC and 1099-MISC?​

The 1099-NEC is specifically for reporting nonemployee compensation, whereas many other types of compensation can be reported on the 1099-MISC.

 

Reminder: There needs to be at least a $600 threshold to get a 1099. Third Party payments such as credit card or PayPal are excluded from the 1099.

 

1099s in QuickBooks Desktop

• Go up to “Vendors”
• “Vendor Center”
• Select the vendor
• Click the little pencil to edit
• Go to “Tax Settings”
• Checkmark “Vendor Eligible for 1099”
• Enter “Vendor Tax ID”
• Click “OK”

 

Prepare 1099s

• Go up to “Vendors”
• “1099 Forms”
• “Print/E-File 1099 Forms”
• Pop up screen will show **Click Yes** (First time doing this, it will ask to back up QuickBooks)
• Click “Get Started” (Form 1099-NEC/Form 1099-MISC)
• Every vendor that you marked “eligible” will show

**You can check/uncheck vendors you want

• Click “Continue”
• You will see any information and you can make adjustments by double-clicking the details.
• Once details are accurate click “Continue”
• Map vendor payment accounts

Report all payments in Box 1 **Not Recommended. You just need to decide if the expense category qualifies for the NEC or not.**

• Click “Continue”
• You can “View included payments” or “View excluded payments”
• Click ”Continue”
• Confirm 1099 entries **Verifying who gets the 1099 NEC form
• Click “Continue”
• “Print Form 1099-NEC” 
• Choose the correct date
• Click “OK”
• Checkmark vendor
• “Print 1099” 5 copies
• “Print 1096”

 

Who gets Forms 1099-MISC and NEC?

• Copy A: IRS
• Copy 1: State tax department (if applicable)
• Copy B: Contractor / Vendor
• Copy 2: Contractor / Vendor Copy 
• C: Your records

 

1096 Form

If you’re sending both Form 1099-MISC & Form 1099-NEC, you need two separate 1096 Forms. **One for each form.

• If you click “Go to 1099 E-File Service”
• Pop up screen will show “Launch Web Browser?”
• Click “OK”
• “File 1099 Now” **It has a cost
• Enter forms you have

 

For more details visit: https://www.irs.gov/instructions/i1099msc

 

If you just want to see who qualifies for 1099

• Go up to “Vendors”
• “1099 Forms”
• “Review 1099 Vendors”/ ”1099 Summary Report”
• “Order 1099 Forms”  **If you want order your forms directly from Intuit

 

 

Need a W9: https://www.irs.gov/pub/irs-pdf/fw9.pdf

IRS 1099-Misc Publication: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

Timestamps: 

0:00 – Intro
0:22 – Changes for 2020 tax year
0:58 – Difference between 1099-NEC and 1099-MISC
1:43 – Entering inside QuickBooks Desktop
2:25 – Print/E-file 1099 forms
4:40 – 1099 NEC/Select Vendors
4:49 – Verify Vendors
5:26 – Map Accounts
9:09 – Review payments
9:52 – Confirm Entries
11:17 – Print 1099/Who gets Forms
11:52 – Print 1096
13:00 – IRS Website (1099)
14:22 – 1099-MISC/Select & Verify Vendors
14:38 – Map Accounts and Review Payments
15:48 – Confirm Entries
16:09 – Print Forms
16:30 – Vendor 1099 Review Report
16:50 – Order 1099 Forms
17:39 – Free Workshop and Final Thoughts

 

Click here to receive our QB tips straight to your inbox each week!

______________________

Have you been using QuickBooks for a while, but when you pull a report you just don’t understand what it’s saying?

Does the idea of going to see your tax professional sound a little stressful and maybe cause you to feel like you want to pull your hair out?

I would love for you to join me on my customizing QuickBooks workshop.

I’ll be sharing:

• The most efficient way to track your Income and Expenses.
• How to create accurate reports in order to view how your business is actually doing and stop second-guessing yourself.
• Where to get the data you need to make the best decisions to grow your business.

And the #1 SECRET to feeling Confident at your next tax appointment.

I’m excited to see you on the workshop!

Click here to save your seat  →  Join My Free Workshop!

 

I’d love to connect with you on Instagram or Facebook

Subscribe for more QuickBooks tips on YouTube  

#CandusKampfer

 

Comment below and let me know if you’re ready to process your 1099’s now?  👇🏻