How do I create Form 1099-MISC?

Creating Form 1099-MISC

  1. Click on the Payer List button.
  2. Double click on the payer name.
  3. Highlight the recipient to add the form to.
  4. Click on the Add Form button.
  5. Choose 1099-MISC from the Form Type drop down menu.
  6. Fill in the necessary fields on the form:
    • Return Information Tab:
      • Corrected: Check if this box applies.
      • Direct Sales:  Check if this box applies.
      • State 1/Payer’s state no.:  Enter state abbreviation.  Enter payer's state number.
      • State 2/Payer’s state no.:  Enter state abbreviation.  Enter payer's state number. 
      • Account Number:  A number assigned to recipient by the payer.  This field is optional except for the following cases:
        • The recipient has multiple returns for the same return type.
        • The returns are filed using the E-file Center.
        • The “FATCA filing requirement” box is checked.
      • FATCA filing requirement:  Check this box if the payer is filing Form 1099-MISC to satisfy a chapter 4 account reporting requirement. 
      • 2nd TIN Notice:  Check this box if notified by the IRS twice within 3 calendar years that the recipient provided an incorrect TIN.
    • Transaction Summary Tab:
      • Rent:  Enter amounts of $600 or more paid to recipients for all types of rents.
      • Royalties:  Enter gross royalty payments of $10 or more before reduction for severance and other taxes that may have been withheld and paid.
      • Other income:  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.
      • Federal income tax withheld:  Enter backup withholding.
      • Fishing boat proceeds:  Enter the share of all proceeds from the sale of a catch.
      • Medical and health care payments:  Enter payments of $600 or more made in the course of trade to each physician or other supplier or providers of medical or health care services.
      • Payer Made Direct Sales of $5,000 or more: 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 anywhere other than in a permanent retail establishment. 
      • Substitute payments in lieu of dividends or interest:  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.
      • Crop insurance proceeds:  Enter crop insurance proceeds of $600 or more paid to farmers by insurance companies.
      • Excess golden parachute payments:  Enter any excess golden parachute payments.
      • Gross proceeds paid to an attorney:  Report gross proceeds paid to an attorney in connection with legal services.
      • Section 409A Deferrals:  If the total is $600 or more, enter the amount of the total deferrals during the year for the non-employee from all non-qualified deferred compensation (NQDC) plans subject to the provisions of section 409A. The deferrals during the year include earnings on the current year and prior year deferrals.
      • Section 409A Income:  Enter the amount of current year and prior year deferrals that are includible in income under section 409A because the NQDC plan fails to satisfy the requirements of section 409A. Include the earnings on the deferrals.
      • State tax withheld (1):  Enter state income tax withheld.
      • State tax withheld (2):  Enter state income tax withheld.
      • State income (1):  Enter state income.
      • State income (2):  Enter state income.
  7. Click Save.
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