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:

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:


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:

IRS 1099-Misc Publication:


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


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