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QuickBooks 1099-MISC for 2011 – A Quick Note

January 9, 2012 | By | 17 Replies More

By now you should have heard that the IRS requirements for the 1099-MISC form for 2011 are different this time around – and that you must do something about this if you are using QuickBooks. Here is a quick overview of what you need to know.

If you are using QuickBooks 2012 you need to upgrade to the R5 version to get the latest version of the 1099 Wizard. I won’t go into details on how to use this – see the excellent article by Laura Madeira on Tracking and Reporting Vendor 1099-MISC Payments. A very good, detailed explanation.

If you are using QuickBooks 2009, 2010 or 2011 you need to download a separate utility program to handle 1099′s. See the information and instructions from Intuit about the QuickBooks 1099 Assistant. This is NOT an update to your copy of QuickBooks itself, but a separate program.

  • If you are a Currently enrolled ProAdvisor then you can download this for free. Log in to the ProAdvisor member website, click Download Your Software on the home page.
  • If you are not a ProAdvisor then you will have to pay for this utility program. From the link I provided above you will click on the purchase link. The cost is $0.99.

I have no idea why Intuit has decided to charge $0.99 for this utility for versions of QuickBooks that are still being supported. I can understand why they haven’t released a last minute update within the program – the “wizard” is very different in QB 2012 than what you had in prior versions, and rushing out a last minut update would invite disaster. Having a separate utility like this makes a lot of sense. But why charge for it?

For Mac users, note that this utiltity is available for the 2010 and 2011 versions, with information available at this link.

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Category: QuickBooks Tips/Tricks, Software Updates

About the Author ()

Charlie Russell is the founder of CCRSoftware. He's been involved with the small business software industry since the mid 70's, and remembers releasing his first commercial accounting software product when you had a one-floppy disk drive system, loading the program from one floppy and then replacing that with the other floppy to hold the data. He has a special interest in inventory and manufacturing software for small businesses. Charlie is a Certified Advanced QuickBooks ProAdvisor with additional certifications for QuickBooks Online and QuickBooks Enterprise. He also is a Xero Certified Partner. Visit his CCRSoftware web site for information about his QuickBooks add-on products. Charlie can be reached at charlie.russell@sleeter.com He is also the author of the California Wildflower Hikes blog Connect with Charlie at Google

Comments (17)

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  1. Cindi Ebert says:

    I attended the 1099-MISC live Webinar today and learned that Intuit will be issuing another patch as a manual download (I believe Release R6)sometime next week for the 2012 PC versions with additional changes. Have you heard about this new release?

    • Cindi, unfortunately, I cannot talk about upcoming releases. If I know something, I’m usually covered by a non-disclosure agreement that says that I cannot talk about it until the day it is released. The only time I can say something is if Intuit makes some sort of announcement, or releases me from the NDA

  2. Another note – there is a bug in the current 1099 Wizard, with an easy workaround. See the article at http://qbblog.ccrsoftware.info/2012/01/quickbooks-2012-1099-wizard-bug-and-workaround/

  3. Michelle C. says:

    OK, so I use Pro 2009…and ran my 1099 ‘wizard’ from within Pro 2009 earlier today, for my cleaning lady’s 1099 that cleans my shop. It ran the same as in past years, and I had already ordered and received the forms from the IRS form site….It printed correctly….and I had verified her payments from a separate vendor report. So, I don’t understand, what did I miss? Can you point me to another article for the changes? I did search a bit on the sleeter site…but I’m confused.
    Thanks,
    M

    • Michelle, there have been many different discussions on the new 1099 rules. I didn’t really get into that as it has been discussed in detail in many other places. Essentially, there is a change where certain payment types are to be excluded from a 1099-Misc, different than before. If you pay someone using a debit card, credit card or some third party payment method (that is, not using a check or cash), you no longer report that payment on a 1099.

      If you are an accounting professional or ProAdvisor, there has been a lot of talk about this in the Sleeter Group membership forums (a great source for information).

      There is some info on this at http://payroll.intuit.com/support/kb/2001238.html, and that page has a note about how to manually make adjustments if you have a very small number of payments that are affected. This page was found by following one of the links in my article. Also, Laura Madeira’s article (also linked to in the article) included this link to the IRS notice: http://www.irs.gov/instructions/i1099msc/index.html

      My apologies for not making that clearer. I’ve seen SO MUCH discussion of the new IRS requirements that I just assumed that everyone had heard about it!

  4. Doug Sleeter says:

    Joy Prado (our Bookkeeper) and I just finished doing 1099s for the Sleeter Group. It took us 30 minutes and it cost $39.90 for our 10 vendors. This is the 2nd year in a row that we’ve used the service and it works great.

    We looked at using QuickBooks e-File, but since we’d still have to DELIVER the forms to the recipients, we would have needed to buy the paper, print the forms, and mail them… That’s so OLD WORLD!

    The Track1099 service allows you to prepare, e-deliver, and e-file FORM 1099-MISC. It interfaces with Bill.com, Intacct, QuickBooks Online, and you can do an export/import of the data from QuickBooks and Peachtree right into their system.

    Here is a link with more explanation: http://www.sleeter.com/partners/track1099

    • Thanks, Doug – does that product handle the new requirements for not including debit card (etc) payments?

      • Answering myself (I talk to myself a lot these days…), the answer is that your accounting software handles which items are included in the 1099 – Track1099 just takes those totals. So as long as your accounting system has the right numbers, Track1099 will work fine.

  5. Linda Grant says:

    What happens if you’re in Quickbooks 2007? :)

    • Linda, your copy of QB 2007 won’t automatically handle the changed 1099 features. You would either need to use the service that Doug talks about above (I think it would work with QB 2007?), or you have to manually adjust things. Note that you might not have to worry about this if you aren’t using credit cards or PayPal or something similar to pay your 1099-Misc vendors.

      Essentially, some kinds of payments are left out of the 1099 totals now, and with this “wizard” the program can be set to not include those payments.

      If you look at this Intuit article you will see that they have a section about how to manage this by doing journal entries: http://payroll.intuit.com/support/kb/1002600.html

  6. Doug Sleeter says:

    Laura Madeira, a longtime Sleeter Group consultant and expert QuickBooks Proadvisor, also has a great article in her blog that covers the 1099 wizard in QuickBooks 2012 along with what to do about excluding payments made by credit card (the 1099-k issue). See http://www.quick-training.com/2011/12/21/quickbooks-2012-new-1099-tax-form-wizard-2/

  7. Linda Grant says:

    Thank you both so much. Let’s just say I have a lot of work on my hands. I just started at this company and my predecessor was only using Quickbooks as a check register.

  8. William Murphy says:

    I must admit that I am a little late in reading this article Charlie, and it is probably a good thing or I would have been on a ‘rant’ long before now. You said, “I have no idea why Intuit has decided to charge $0.99 for this utility for versions of QuickBooks that are still being supported.”

    Well I have an idea……’pure greed’ is what it is called. If you sell a $0.99 (aka: 1-buck) utility to a million 2010 aand 2011 users of QB you have just pocketed yourself some nifty ‘extra cash’ despite the fact that you are under a contractual obligation to provide maintenance updates to deal with ‘compliance requirements’. Probably some ‘Class Action’ laywer types are preparing the paperwork at this very moment!

    Murph

  9. Jennifer Smith says:

    I’m confused about something. According to my reading, the Merchant Accounts will only have to report for those vendors receiving $20,000 and up per year. So that means that there will be a huge gap – people like me who make somewhere between $600 and $20,000 will no longer receive 1099′s if our clients are using PayPal (or, in my case, Intuit Payment Network) to pay us. That seems counter-productive. Am I understanding this correctly?

    • Doug Sleeter says:

      Jennifer,
      We’re working on a new post that will hopefully answer some of these questions. Please stay tuned.

      For sure, the rollout of this new form is confusing and I think it brings up more questinos than answers. But we’re working on it, so hopefully we’ll have something tomorrow or Friday.

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