Form 1099-MISC for 2013

(If you need to see the 2012 Form 1099-MISC, click here.)

Businesses must provide a Form 1099-MISC to recipients by January 31, 2014. The due date for providing Form 1099-MISC to recipients if amounts are reported in boxes 8 and 14 is extended to February 18, 2014.

Businesses must also send Copies A of all paper Forms 1099-MISC and a Form 1096, a summary of 1099 forms, to the Internal Revenue Service (IRS) by February 28, 2014 (or March 31, 2014, if you file electronically). The Form 1099-MISC supported in QuickBooks and by the Intuit 1099 E-File Service is often used to report payments to independent contractors.

What's New

Truncating recipient's identification number on paper payee statements. Pursuant to proposed regulations sections 1.6042-4(b) and 301.6109-4 (REG-148873-09), all filers of this form may truncate a recipient's identification number (social security number (SSN), individual taxpayer identification number (ITIN), or adoption taxpayer identification number (ATIN)) on payee statements. For more information, see part M in the 2013 General Instructions for Certain Information Returns.

This is an IRS form. In order to print your forms directly from QuickBooks, you must purchase pre-printed forms. Click here to go to our tax forms page where you may purchase forms. If you use QuickBooks preprinted forms, they may look different, but they have been approved by the IRS.

Box - Payer's Name, Address, Phone

IRS directions

Fill in the legal business name and address.

QuickBooks behavior

QuickBooks pulls this information from the company information provided in the "Legal Information" section of the company information window.

How to verify your QuickBooks result

If the company name or address is incorrect, click Company, and then Company Information. Make any necessary corrections to the Legal Information section, and click OK.

Box - Payer's Federal Identification Number

IRS directions

Fill in the Federal Employer Identification Number.

QuickBooks behavior

QuickBooks pulls this information from the Federal Employer Identification Number field in the company information window.

How to verify your QuickBooks result

If the Federal Employer Identification Number is incorrect, click Company, and then Company Information. Enter the correct FEIN in the Federal Employer Identification Number field, and click OK.

Box - Recipient's Identification Number

IRS directions

Enter the recipient's identification number using hyphens in the proper format. SSNs, ITINs, and ATINs should be in the XXX-XX-XXXX format. EINs should be in the XX-XXXXXXX format. You should make every effort to insure that you have the correct type of number reported in the correct form.

QuickBooks behavior

QuickBooks pulls this information from the vendor record.

How to verify your QuickBooks result

If the identification number is incorrect, open up the vendor record and change it. Click Vendors, and then Vendor Center. On the left, there is a list of vendors. Click the appropriate vendor name to bring up that vendor record. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Enter the correct number in the Tax ID field, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Enter the correct number in the Vendor Tax ID field, and then click OK.

Box - Recipient's Name, Address

IRS directions

Fill in the name and street address of the recipient.

QuickBooks behavior

QuickBooks pulls this information from the vendor record.

How to verify your QuickBooks result

If the vendor's name or address is incorrect, open up the vendor record and change it. Click Vendors, and then Vendor Center. On the left, there is a list of vendors. Click the appropriate vendor name to bring up that vendor record. In the Edit Vendor window, correct the name and address information, and then click OK.

Box - Account Number

IRS directions

The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099-MISC. Additionally, the IRS encourages you to designate an account number for all Forms 1099-MISC that you file. See part L in the General Instructions for Certain Information Returns.

QuickBooks behavior

QuickBooks does not supply this information.

Box - 2nd TIN not.

IRS directions

You may enter an "X" in this box if you were notified by the IRS twice within 3 calendar years that the payee provided an incorrect TIN. If you mark this box, the IRS will not send you any further notices about this account. However, if you received both IRS notices in the same year, or if you received them in different years but they both related to information returns filed for the same year, do not check the box at this time. For purposes of the two-notices-in-3-years rule, you are considered to have received one notice. You are not required to send a second "B" notice upon receipt of the second notice. See part N in the General Instructions for Certain Information Returns for more information.

QuickBooks behavior

QuickBooks does not supply this information.

Box 1 - Rents

IRS directions

Enter amounts of $600 or more for all types of rents, such as any of the following:

  • Real estate rentals paid for office spaces. However, you do not have to report these payments on Form 1099-MISC if you paid them to a real estate agent. But the real estate agent must use Form 1099-MISC to report the rent paid over to the property owner.
  • Machine rentals (for example, renting a bulldozer to level your parking lot). If the machine rental is part of a contract that includes both the use of the machine and the operator, prorate the rental between the rent of the machine (report that in box 1) and the operator's charge (report that as nonemployee compensation in box 7).
  • Pasture rentals (for example, farmers paying for the use of grazing land).

Public housing agencies must report in box 1 rental assistance payments made to owners of housing projects.

Coin operated amusements. If an arrangement between an owner of coin-operated amusements and an owner of a business establishment where the amusements are placed is a lease of the amusements or the amusement space, the owner of the amusements or the owner of the space, whoever makes the payments, must report the lease payments in box 1 of Form 1099-MISC if the payments total at least $600. However, if the arrangement is a joint venture, the joint venture must file a Form 1065, U.S. Return of Partnership Income, and provide each partner with the information necessary to report the partner's share of the taxable income. Coin-operated amusements include video games, pinball machines, jukeboxes, pool tables, slot machines, and other machines and gaming devices operated by coins or tokens inserted into the machines by individual users.

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Rents box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the rents paid to the owner of your business's building with the Rent account, you should choose Rent for box 1). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the rents paid to the owner of your business's building with the Rent account, you should choose Box 1 for the Rent account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 2 - Royalties

IRS directions

Enter gross royalty payments (or similar amounts) of $10 or more. Report royalties from oil, gas, or other mineral properties before reduction for severance and other taxes that may have been withheld and paid. Do not include surface royalties. They should be reported in box 1. Do not report oil or gas payments for a working interest in box 2; report payments for working interests in box 7. Do not report timber royalties made under a pay-as-cut contract; report these timber royalties on Form 1099-S, Proceeds from Real Estate Transactions.

Use box 2 to report royalty payments from intangible property such as patents, copyrights, trade names, and trademarks. Report the gross royalties (before reduction for fees, commissions or expenses) paid by a publisher directly to an author or literary agent, unless the agent is a corporation. The literary agent (whether or not a corporation) that receives the royalty payment on behalf of the author must report the gross amount of royalty payments to the author on Form 1099-MISC whether or not the publisher reported the payment to the agent on its Form 1099-MISC.

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Royalties box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the royalties you pay to an intellectual property owner with the Professional Fees account, you should choose Professional Fees for box 2). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the royalties you pay to an intellectual property owner with the Professional Fees account, you should choose Box 2 for the Professional Fees account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 3 - Other Income

IRS directions

Enter other income of $600 or more required to be reported on Form 1099-MISC that is not reportable in one of the other boxes on the form.

Also enter in box 3 prizes and awards that are not for services performed. Include the fair market value (FMV) of merchandise won on game shows. Also include amounts paid to a winner of a sweepstakes not involving a wager. If a wager is made, report the winnings on form W-2G, Certain Gambling Winnings.

Do not include prizes and awards paid to your employees. Report these on Form W-2. Do not include in box 3 prizes and awards for services performed by nonemployees, such as an award for the top commission salesperson. Report them in box 7.

Prizes and awards received in recognition of past accomplishments in religious, charitable, scientific, artistic, educational, literary, or civic fields are not reportable if:

  • The winners are chosen without action on their part.
  • The winners are not expected to perform future services.
  • The payer transfers the prize or award to a charitable organization or governmental unit under a designation made by the recipient.

Other items required to be reported in box 3 include the following:

  1. Payments as explained on page MISC-2 under Deceased employee's wages.
  2. Payments as explained on page MISC-3 under Indian gaming profits, payments to tribal members.
  3. A payment or series of payments made to individuals for participating in a medical research study or studies.
  4. Termination payments to former self-employed insurance salespeople. These payments are not subject to self-employment tax and are reportable in box 3 (rather than box 7) if the following apply:
    1. The payments are received from an insurance company because of services performed as an insurance salesperson for the company.
    2. The payments are received after termination of the salesperson's agreement to perform services for the company.
    3. The salesperson did not perform any services for the company after termination and before the end of the year.
    4. The salesperson enters into a covenant not to compete against the company for at least 1 year after the date of termination.
    5. The amount of payments depends primarily on policies sold by the salesperson or credited to the salesperson's account during the last year of the service agreement or to the extent those policies remain in force for some period after termination, or both.
    6. The amount of the payments does not depend at all on length of service or overall earnings from the company (regardless of whether eligibility for payment depends on length of service).
    If the termination payments do not meet all these requirements, report them in box 7.
  5. Generally, all punitive damages, any damages for nonphysical injuries or sickness, and any other taxable damages. Report punitive damages even if they relate to physical injury or physical sickness. Generally, report all compensatory damages for nonphysical injuries or sickness, such as employment discrimination or defamation. However, do not report damages (other than punitive damages):
    1. Received on account of personal physical injuries or physical sickness.
    2. That do not exceed the amount paid for medical care or emotional distress.
    3. Received on account of nonphysical injuries (for example, emotional distress) under a written binding agreement, court decree, or mediation award in effect on or issued by September 13, 1995.
    4. That are for a replacement of capital, such as damages paid to a buyer by a contractor who failed to complete construction of a building.

Damages received on account of emotional distress, including physical symptoms such as insomnia, headaches, and stomach disorders, are not considered received for a physical injury or physical sickness and are reportable unless described in b or c above. However, damages received on account of emotional distress due to physical injuries or physical sickness are not reportable.

Also report liquidated damages received under the Age Discrimination in Employment Act of 1967.

Foreign agricultural workers. Report in box 3 compensation of $600 or more paid in a calendar year to an H-2A visa agricultural worker who did not give you a valid taxpayer identification number. You must also withhold federal income tax under the backup withholding rules. For more information, go to IRS.gov and enter "foreign agricultural workers" in the search box.

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Other Income box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated a cash prize you paid with the Other Expenses account, you should choose Other Expenses for box 3). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated a cash prize you paid with the Other Expenses account, you should choose Box 3 for the Other Expenses account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 4 - Federal Income Tax Withheld

IRS directions

Enter backup withholding. For example, persons who have not furnished their TIN to you are subject to withholding on payments required to be reported in boxes 1, 2 (net of severance taxes), 3, 5 (to the extent paid in cash), 6, 7 (except fish purchases for cash), 8, 10, and 14. For more information on backup withholding, including the rate, see part N in the General Instructions for Certain Information Returns.

Also enter any income tax withheld from payments to members of Indian tribes from the net revenues of class II or class III gaming activities conducted or licensed by the tribes.

QuickBooks behavior

QuickBooks adds together all withholding from payments to this vendor from any account you've associated with the Vendor Income Tax box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the federal income tax withheld from a vendor who has not furnished a TIN with the Vendor Income Tax account, you should choose Vendor Income Tax for box 4). If you used more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the federal income tax withheld from a vendor who has not furnished a TIN with the Vendor Income Tax account, you should choose Box 4 for the Vendor Income Tax account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 5 - Fishing Boat Proceeds

IRS directions

Enter the individual's share of all proceeds from the sale of a catch or the FMV of a distribution in kind to each crew member of fishing boats with normally fewer than 10 crew members. A fishing boat has normally fewer than 10 crew members if the average size of the operating crew was fewer than 10 on trips during the preceding 4 calender quarters.

In addition, report cash payments of up to $100 per trip that are contingent on a minimum catch and are paid solely for additional duties (such as mate, engineer or cook) for which additional cash payments are traditional in the industry. However, do not report on Form 1099-MISC any wages reportable on Form W-2.

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Fishing Boat Proceeds box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the money you paid to a fishing boat worker with the Professional Fees account, you should choose Professional Fees for box 5). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the money you paid to a fishing boat worker with the Professional Fees account, you should choose Box 5 for the Professional Fees account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 6 - Medical and Health Care Payments

IRS directions

Enter payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services. Include payments made by medical and health care insurers under health, accident, and sickness insurance programs. If payment is made to a corporation, list the corporation as the recipient rather than the individual providing the services. Payments to persons providing health care services often include charges for injections, drugs, dentures and similar items. In these cases the entire payment is subject to information reporting. You are not required to report payments to pharmacies for prescription drugs.

The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for medical or health care services provided by corporations, including professional corporations. However, you are not required to report payments made to a tax-exempt hospital or extended care facility or to a hospital or extended care facility owned and operated by the United States (or its possessions), a state, the District of Columbia, or any of their political subdivisions, agencies or instrumentalities.

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Medical and Health Care Payments box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the money you pay to a physician with the Professional Fees account, you should choose Professional Fees for box 6). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the money you pay to a physician with the Professional Fees account, you should choose Box 6 for the Professional Fees account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 7 - Nonemployee Compensation

IRS directions

Enter nonemployee compensation of $600 or more. Include fees, commission, prizes and awards for services performed as a nonemployee, other forms of compensation for services performed for your trade or business by an individual who is not your employee, and fish purchases for cash. Include oil and gas payments for a working interest, whether or not services are performed. Also include expenses incurred for the use of an entertainment facility that you treat as compensation to a nonemployee. Federal executive agencies that make payments to vendors for services, including payments to corporations, must report the payments in this box.

What is nonemployee compensation? If the following four conditions are met, you must generally report a payment as nonemployment compensation.

  • You made the payment to someone who is not your employee;
  • You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
  • You made the payment to an individual, partnership, estate, or, in some cases, a corporation; and
  • You made payments to the payee of at least $600 during the year.

Self-employment tax. Generally, amounts reportable in box 7 are subject to self-employment tax. If payments to individuals are not subject to this tax and are not reportable elsewhere on Form 1099-MISC, report the payments in box 3. However, report section 530 (of the Revenue Act of 1978) worker payments in box 7.

Nonqualified deferred compensation (Section 409A) income. Include in box 7 the amount of all deferrals (plus earnings), reported in box 15b that are includible in gross income because the nonqualified deferred compensation (NQDC) plan fails to satisfy the requirements of section 409A.

Golden parachute payments. A parachute payment is any payment that meets all of the following conditions.

  1. The payment is in the nature of compensation.
  2. The payment is to, or for the benefit of, a disqualified individual.
  3. The payment is contingent on a change in the ownership of a corporation, the effective control of a corporation, or the ownership of a substantial portion of the assets of a corporation (a change of ownership or control).
  4. The payment has (together with other payments described in 1, 2, and 3 above made to the same individual) an aggregate present value of at least 3 times the individual's base amount.

A disqualified individual is one who at any time during the 12-month period prior to and ending on the date of the change in ownership or control of the corporation (the disqualified individual determination period) was an employee or independent contractor and was, in regard to that corporation, a shareholder, an officer or a highly compensated individual.

Independent contractor. Enter in box 7 the total compensation, including any golden parachute payment. For excess golden parachute payments, see box 13 reporting instructions. For employee reporting of these payments, see Pub. 15-A.

Payments not reported in box 7. Do not report in box 7, nor elsewhere on Form 1099-MISC, the cost of current life insurance protection (report on Form W-2 or Form 1099-R); an employee's wages, travel or auto allowance, or bonuses (report on Form W-2); or the cost of group-term life insurance paid on behalf of a former employee (report on Form W-2).

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Nonemployee Compensation box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the payments made to a contract worker with the Contract Labor account, you should choose Contract Labor for box 7). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the payments made to a contract worker with the Contract Labor account, you should choose Box 7 for the Contract Labor account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 8 - Substitute Payments in Lieu of Dividends or Interest

IRS directions

Enter aggregate payments of at least $10 received by a broker for a customer in lieu of dividends or tax-exempt interest as a result of a loan of a customer's securities. For this purpose, a customer includes an individual, trust, estate, partnership, association, company, or corporation. It does not include a tax-exempt organization, the United States, any state, the District of Columbia, a U.S. possession, or a foreign government. File Form 1099-MISC with the IRS and furnish a copy to the customer for whom you received the payment. Also, file Form 1099-MISC for and furnish a copy to an individual for whom you received a payment in lieu of tax-exempt interest.

Substitute payment means a payment in lieu of (a) a dividend or (b) tax-exempt interest to the extent that interest (including OID) has accrued while the securities were on loan.

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Substitute Payments box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the money you paid to a broker for a customer in lieu of interest on a loan with the Other Expenses account, you should choose Other Expenses for box 8). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the money you paid to a broker for a customer in lieu of interest on a loan with the Other Expenses account, you should choose Box 8 for the Other Expenses account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 9 - Payer Made Direct Sales of $5,000 or More

IRS directions

Enter an "X" in the checkbox for sales by you of $5,000 or more of consumer products to a person on a buy-sell, deposit-commission, or other commission basis for resale (by the buyer or any other person) anywhere other than in a permanent retail establishment. Do not enter a dollar amount in this box.

If you are reporting an amount in box 7, you may also check box 9 on the same Form 1099-MISC.

The report you must give to the recipient for these direct sales need not be made on the official form. It may be in the form of a letter showing this information along with commissions, prizes, awards, etc.

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Direct Sales box on the 1099 form. If this amount exceeds $5,000, QuickBooks checks this box.

How to verify your QuickBooks result

There should be no dollar amount in this box.

Box 10 - Crop Insurance Proceeds

IRS directions

Enter crop insurance proceeds of $600 or more paid to farmers by insurance companies unless the farmer has informed the insurance company that expenses have been capitalized under section 278, 263a, or 447.

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Crop Insurance Proceeds box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the money you paid a farmer as a crop insurance payment with the Crop Insurance account, you should choose Crop Insurance for box 10). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the money you paid a farmer as a crop insurance payment with the Crop Insurance account, you should choose Box 10 for the Crop Insurance account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 11 - Foreign Tax Paid

IRS directions

Enter the foreign tax paid on payments reported on Form 1099-MISC. Report this amount in U.S. dollars.

QuickBooks behavior

QuickBooks does not fill in this box.

Box 12 - Foreign Country or U.S. Possession

IRS directions

Enter the name of the foreign country or U.S. possession for which the foreign tax was paid and reported in box 11.

QuickBooks behavior

QuickBooks does not fill in this box.

Box 13 - Excess Golden Parachute Payments

IRS directions

Enter any excess golden parachute payments. An excess parachute payment is the amount of the excess of any parachute payment over the base amount (the average annual compensation for services includible in the individual's gross income over the most recent 5 tax years).

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Excess Golden Parachute Payments box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the money you paid as excess golden parachute payments with the Professional Fees account, you should choose Professional Fees for box 13). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the money you paid as excess golden parachute payments with the Professional Fees account, you should choose Box 13 for the Professional Fees account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 14 - Gross Proceeds Paid to an Attorney

IRS directions

Enter gross proceeds of $600 or more paid to an attorney in connection with legal services (regardless of whether the services are performed for the payer).

QuickBooks behavior

QuickBooks adds together all payments made to this vendor from any account you've associated with the Gross Proceeds to Attorney box on the 1099 form.

How to verify your QuickBooks result

If this amount is not correct, first, make sure that you have correctly set up this vendor as a 1099 vendor. Then, ensure that your accounts are correctly mapped to the Form 1099.

To set up the vendor:
Click Vendors, and then Vendor Center. From the list on the left, select the desired vendor. For QuickBooks 2012 and earlier, in the Edit Vendor window, click the Additional Info tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK. For QuickBooks 2013 and later, in the Edit Vendor window, click the Tax Settings tab. Ensure that the Vendor eligible for 1099 checkbox is checked, and then click OK.

To map the accounts:
In QuickBooks 2011: Click Edit and then Preferences. In the left column, select Tax: 1099. From the Company Preferences tab, select a 1099 box that applies to you. Click the drop-down arrow in the Account column, and choose the account where you recorded that vendor's bills as Expenses or Items (i.e., if you associated the money you paid to an attorney with the Professional Fees account, you should choose Rent for box 14). If you paid from more than one account, choose Multiple and then specify the accounts.

In QuickBooks 2012 or later: Click Vendors and then Print/E-file 1099s. Click Get Started and then Continue to the Map vendor payment accounts page. For each account you used to pay 1099 vendors, click the drop-down arrow in the 1099 box column to choose the box on Form 1099 where these payment amounts should appear (i.e., if you associated the money you paid to an attorney with the Professional Fees account, you should choose Box 14 for the Professional Fees account).

Note: Each account may only be mapped to one 1099 box. If you are unsure of which account to use, please consult your accounting professional for assistance.

Report:
Use the 1099 Detail Report to see a list of 1099 vendors and accounts.

Box 15a - Section 409A Deferrals

IRS directions

You do not have to complete this box. If you complete this box, enter the total amount deferred during the year of at least $600 for the nonemployee under all nonqualified plans. The deferrals during the year include earnings on the current year and prior year deferrals. For deferrals and earnings under NQDC plans for employees, see the Instructions for Forms W-2 and W-3.

QuickBooks behavior

QuickBooks does not fill in this box.

Box 15b - Section 409A Income

IRS directions

Enter all amounts deferred (including any earnings on amounts deferred) that are includible in income under section 409A because the NQDC plan fails to satisfy the requirements of the section 409A. Do not include amounts properly reported on a Form 1099-MISC, Form W-2, or Form W-2c for a prior year. Also, do not include amounts that are considered to be subject to a substantial risk of forfeiture for purposes of section 409A. The amount included in box 15b is also includible in box 7.

QuickBooks behavior

QuickBooks does not fill in this box.

Box 16 - State Information

IRS directions

This box, and Copies 1 and 2, are provided for your convenience only and need not be completed for the IRS. Use the state information boxes to report payments for up to two states. Keep the information for each state separated by the dash line. If you withheld state income tax on this payment, you may enter it in box 16. Use Copy 1 to provide information to the state tax department. Give Copy 2 to the recipient for use in filing the recipient's state income tax return.

QuickBooks behavior

QuickBooks does not fill in this box.

Box 17 - State Information

IRS directions

This box, and Copies 1 and 2 are provided for your convenience only and need not be completed for the IRS. Use the state information boxes to report payments for up to two states. Keep the information for each state separated by the dash line. If you withheld state income tax on this payment, in box 17 enter the abbreviated name of the state and the payer's state identification number. The state number is the payer's identification number assigned by the individual state. Use Copy 1 to provide information to the state tax department. Give Copy 2 to the recipient for use in filing the recipient's state income tax return.

QuickBooks behavior

QuickBooks does not fill in this box.

Box 18 - State Information

IRS directions

This box, and Copies 1 and 2, are provided for your convenience only and need not be completed for the IRS. Use the state information boxes to report payments for up to two states. Keep the information for each state separated by the dash line. If you withheld state income tax on this payment, in box 18 you may enter the amount of the state payment. Use Copy 1 to provide information to the state tax department. Give Copy 2 to the recipient for use in filing the recipient's state income tax return.

QuickBooks behavior

QuickBooks does not fill in this box.