(Update 1/31/2012: If you haven’t already downloaded this app, it’s no longer available as of 1/31/2012. But don’t panic! You can still mange these 1099 changes using the manual method. If you have downloaded the app prior to 1/31/2012, then keep reading.)
For tax year 2011 the IRS has changed the 1099-MISC reporting requirements. If you have 1099 vendors, the IRS has made some changes that may affect you. Don’t panic! We’re here to help. (If you don’t have 1099 vendors, you don’t have to worry about any of this.)
The short version: if you’ve paid your vendors using credit cards, debit cards, PayPal, or payment services similar to PayPal, this process will help you make sure that the 1099-MISC forms you create come out right. I’ve got some more information about the changes the IRS made over here.
See? Not so bad.
For QuickBooks 2011 and 2010, we’ve created an app to walk you through the process of making changes in your company file to be sure the right information gets reported on the right form. We can’t offer this app to you for free because we can’t add features to older releases due to regulations. I really wish we could. But you can purchase the QuickBooks 1099 Assistant app for $0.99 which I hope is a fee that works for you.
If not—especially if you’ve paid only a few 1099 vendors with credit cards, debit cards, gift cards, or PayPal—there’s a manual method to update your 1099s that I’ve described in detail.
What do I do?
- Click here to purchase the QuickBooks 1099 Assistant app.
- Either download the QuickBooks 1099 Assistant directly from the purchase page, or wait to get a confirmation email that’s got a link you can use to download the product.
- Open up the downloaded QuickBooks 1099 Assistant app and follow the steps the screen takes you through to install and set up the app.Hot Tip: During set-up, you’ll be prompted to enter your QuickBooks product License Number and Product Number. (Not the new app’s numbers.) Click QuickBooks > About QuickBooks 2010/2011 and jot down the two numbers on the About window.
- Download the latest QuickBooks product update by clicking QuickBooks > Check for QuickBooks Updates.
- After the app and the latest updates are all set up and installed, quit QuickBooks, then open QuickBooks again to enable the 1099 wizard.
- When you’re ready to start your 1099 preparation, open the 1099 Wizard from one of these two access points:Files > Print Forms > 1099sorVendors > Print 1099s/1096s
The 1099 Wizard will take you through the process of updating your 1099 vendor information to follow the new IRS regulations step by step. I’ve written an article that takes you through each step in detail.