Jaclyn Anku, ProAdvisor Training & Certification Leader: On today's episode of In the Know, we'll be exploring 1099 enhancements. With these updates, you'll now be able to prepare and file 1099s faster than ever. Hey, ProAdvisors, it's Jaclyn, and you're watching In the Know, where you can get exclusive access to demos of Intuit product enhancements by the leaders who built them. Let's jump right in with Tiffany Dolan for a demo of 1099 enhancements. Tiffany, welcome back to the show.
Tiffany Dolan: Hi, Jaclyn, it's so good to be here. Thank you so much for having me. I really appreciate it. All right, let's dive right in. I can't wait to show you what we have for 1099s this year. You will find them under expenses right here in QuickBooks. And then you can go to 1099 filings, and in there, you can go ahead and prepare your 1099s.
We have two ways of preparing 1099 forms this year. The first one, which is new, is preparing 1099s by letting QuickBooks scan your books to identify the right recipients, scan all the relevant payments, and map everything to the right 1099 forms so that you only have to review them. This takes a lot less time, but you still have full editing control, and you have state filings for the very first time that are included.
If you don't want to do it this way and would rather do things manually, because you know exactly what you're doing, you can still go through prepping with QuickBooks as help, which is the same 1099 functionality that you already know and is the same as last year. The only difference is that now we have combined federal and state filing.
So I'm going to walk you through the new version of preparing 1099s. First, you would need to verify your business details. Remember that the company legal name needs to be the real company legal name, otherwise the form risks getting rejected by the IRS. Once you're done with that, behind the scenes, QuickBooks is scanning all of your payments, filtering out credit card transactions, removing the corporations, mapping accounts to all the right boxes, and then creating your forms for you. So you can review the results without having to pull a bunch of reports, selecting the right transactions and doing the math yourself.
All right, here we are. The forms are here and they are ready. We have two people the system has identified as potential 1099 recipients. Bridget, who's all ready to file with her 1099-NEC and her total of $7,500 that you can look at if you want. By clicking here, it will open the transaction itself. So you can look at all the totals that have been included in her 1099 form. You can also look at the excluded accounts and anything that is mapped to a 1099 risk form. If you don't want to report this, you can just mark it as unreported.
So that's it for Bridget. Same for Aaron. Aaron wasn't tracked for 1099 manually by the customer. So what you can do is review this recommendation, look at why Aaron is recommended, and decide to track them for 1099. If they're tracked for 1099, then you know they become ready to file as well. You can always review the amount reported as well, if needed, by clicking here and opening it in a new tab.
If you feel that anyone is missing and want to include more recipients, or just curious as to whom we have excluded, you can click on this and here you will see a list of everyone who was paid in 2024, but QuickBooks thinks that they do not need a 1099. There can be several reasons for this. For instance, Intuit is a large corporation, and so we don't need to send a 1099 to a large corporation. This is also a corporation, because it says "Inc.” This is also why they're not included.
So if you still want to add them, you can click here and they will appear in the list right here and you can just add their W-9 information, and anything else that is missing.
For the purpose of this demonstration, let’s now continue and file for Aaron and Bridget. What you will see here is that we have scans based on Aaron’s and Bridget's addresses. We've deciphered that they're in Illinois and California, and we know that Illinois needs only a federal 1099 versus California that wants their version of the form, and so those are also ready because they're participating in the new combined federal and state filing. Some states don't participate in the Combined Federal and State Filing program. We will flag them, file for you at the federal level, and then walk you through what to do at the state level.
And now you're all done! You can go ahead, and pay and file your forms that you've prepared within your version. That's it. Thank you so much for having me. It's always a pleasure. Have a really good rest of your day, everyone.
Jaclyn Anku: Tiffany, thank you so much for that product walkthrough. It's great having you back on the show. If you find this update interesting or helpful, go ahead and like, comment, and subscribe.
Let me quickly recap with the Fast Facts:
- 1099 and all of these enhancements are available to accountants and their clients with transactions in QuickBooks, and with 1099 vendors and contractors who are located in the US.
- W9 collection is live now, and 1099 filing will be live as of January 1, 2025.
That's all we have for now. For more product updates and demos, check out our In the Know hub and be sure to register for our monthly live webinar. I'll catch you next time!
