How to Create and File 1099s in QuickBooks: Step-by-Step Guide for 2025
- Jhon Martin
- Oct 30
- 5 min read
Handling 1099 forms is a crucial part of tax season for small business owners and independent contractors. Fortunately, when you Create & File 1099s in QuickBooks, the process becomes much simpler and more accurate. With QuickBooks’ built-in 1099 e-filing tools, you can easily prepare, review, and submit your forms without the stress of manual paperwork. Whether you use QuickBooks Online or QuickBooks Desktop, this comprehensive 2025 guide will walk you through every step to ensure compliance and help you avoid IRS penalties.
If you encounter any issues while setting up or filing, don’t hesitate to call our QuickBooks experts at +1-866-408-0444 for immediate assistance.
What Is a 1099 Form and Who Needs to File It?
A 1099 form is used to report payments made to non-employees, such as independent contractors, freelancers, or vendors, during the tax year. Businesses must file a 1099-NEC (Nonemployee Compensation) for anyone who was paid $600 or more for services.
You need to issue a 1099 if:
You paid a contractor or freelancer $600 or more during the year.
Payments were made in cash, check, or bank transfer (not through third-party processors like PayPal).
The contractor is not a corporation (except for certain legal or medical services).
Filing 1099s accurately is essential because both the IRS and your contractors use them to track income and ensure proper tax reporting.
Types of 1099 Forms in QuickBooks
QuickBooks supports two main types of 1099 forms:
Form 1099-NEC – Used to report payments to independent contractors or vendors.
Form 1099-MISC – Used for rent payments, royalties, and other miscellaneous income.
For 2025, QuickBooks has streamlined the e-filing process to ensure full compliance with the latest IRS regulations.
Step 1: Prepare Your Vendor Information
Before you begin, it’s important to ensure all vendor information is correct. QuickBooks uses this data to populate your 1099 forms automatically.
Here’s what to check:
Vendor’s full legal name and business name (if applicable).
Complete mailing address.
Tax Identification Number (TIN) or Social Security Number (SSN).
The total amount paid during the tax year.
Pro Tip:
Always request a W-9 form from your contractors before making payments. This ensures that you have accurate tax information when filing 1099s later.
Step 2: Enable 1099 Tracking in QuickBooks
To file 1099s, you must first enable tracking for your vendors in QuickBooks.
In QuickBooks Online:
Go to Expenses > Vendors.
Select a vendor’s name.
Click Edit and check the box labeled Track payments for 1099.
Save your changes.
In QuickBooks Desktop:
Go to Vendors > Vendor Center.
Right-click the vendor’s name and choose Edit Vendor.
In the Tax Settings tab, select Vendor eligible for 1099.
Click OK to save.
Doing this ensures that QuickBooks tracks all payments made to that vendor for tax purposes.
Step 3: Review Payments and Accounts
Next, you’ll need to verify which expense accounts are used to pay your 1099 vendors. This step ensures the correct amounts are included in your 1099 forms.
QuickBooks Online:
Go to Expenses > Vendors.
Select Prepare 1099s (or Payroll > Contractors > Prepare 1099s).
Follow the on-screen setup and map your expense categories to the correct 1099 boxes.
QuickBooks Desktop:
Navigate to Vendors > Print/E-file 1099s > 1099 Wizard.
Select Map Accounts.
Match the appropriate accounts to each 1099 category.
Click Next to continue.
Mapping ensures that QuickBooks reports only eligible payments, such as contractor services, to the IRS.
Step 4: Create and Review 1099 Forms
Once your vendors and accounts are properly set up, QuickBooks will automatically compile your 1099 information.
In QuickBooks Online:
Go to Taxes > 1099 filings.
Click Prepare 1099s.
Review all contractor information and payment totals.
In QuickBooks Desktop:
Use the 1099 Wizard to review each vendor’s details.
Check for missing TINs, incorrect names, or mismatched amounts.
Carefully review all data before e-filing to avoid IRS rejections or penalties.
Step 5: File 1099s Electronically (E-File)
QuickBooks allows you to e-file your 1099s directly through the Intuit 1099 E-File Service. This is the fastest and most reliable method.
How to e-file your 1099s:
Choose the E-file option in QuickBooks.
Log in to your Intuit 1099 E-File account.
Upload and review the forms.
Submit the 1099s to the IRS.
QuickBooks will automatically send copies to your contractors via email or mail.
After submission, you’ll receive confirmation that your forms were successfully filed.
Step 6: Print and Distribute 1099 Copies
Even if you e-file, the IRS requires that each contractor receive a copy of their 1099 form by January 31, 2025.
To print copies:
Go to Taxes > 1099 filings in QuickBooks Online or File > Print Forms > 1099s in QuickBooks Desktop.
Choose Print on pre-formatted forms or Print on plain paper.
Provide a copy to each contractor and keep one for your business records.
Common 1099 Filing Mistakes to Avoid
Incorrect Vendor Type: Ensure you only issue 1099s to non-corporate vendors unless exceptions apply.
Missing or Wrong TIN: Always verify TINs using the vendor’s W-9 form.
Late Filing: Missing the IRS deadline can result in penalties.
Unmapped Accounts: Payments must be linked to the right accounts in QuickBooks.
Using Cash Basis Incorrectly: Ensure your accounting method (cash or accrual) aligns with how you report payments.
Avoiding these mistakes can save your business from costly penalties and re-filing hassles.
Why Use QuickBooks for 1099 Filing?
QuickBooks simplifies the entire process by automating most of the work. Here’s why businesses prefer it:
Automatic calculations for 1099-eligible payments.
Built-in e-filing directly with the IRS.
Pre-filled vendor data for accuracy.
Fast and secure delivery to contractors.
Instant confirmation of filing status.
With QuickBooks, you can file your 1099s confidently without dealing with complicated manual paperwork.
Need Help Filing 1099s in QuickBooks?
If you encounter issues such as missing vendor information, incorrect mapping, or e-filing errors, our QuickBooks experts are here to help. We can walk you through every step, from setup to successful submission.
Call Now: +1-866-408-0444 for immediate QuickBooks 1099 assistance.
Our support team is available 24/7 to help you file your 1099s accurately and on time.
Final Thoughts
Filing 1099s is an essential responsibility for every business that hires independent contractors. With QuickBooks, the process is simpler, faster, and more accurate than ever before. By following this step-by-step 2025 guide, you can prepare and e-file your 1099s with confidence — ensuring IRS compliance and peace of mind.
If you need expert guidance or run into any problems while preparing your 1099s, don’t hesitate to call our QuickBooks specialists at +1-866-408-0444 for professional assistance.
FAQs
Q1. When is the deadline to file 1099s in 2025?The deadline to file 1099-NEC forms with the IRS and send copies to contractors is January 31, 2025.
Q2. Can I file 1099s directly from QuickBooks Online?Yes. QuickBooks Online lets you e-file 1099s through the Intuit 1099 E-File Service and automatically sends copies to your contractors.
Q3. What should I do if my vendor’s information is incorrect?Update the vendor’s details under Expenses > Vendors > Edit Vendor before generating the 1099s.
Q4. What if I miss the 1099 filing deadline?Late filing may result in IRS penalties. Contact our QuickBooks support team at +1-866-408-0444 for immediate help correcting and submitting late forms.
Q5. Does QuickBooks automatically file my 1099s every year?No, you need to manually prepare and e-file your 1099s each tax season, but QuickBooks retains vendor data to make the process faster next time.
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