How do issue a 1099 to a contractor that I paid via Zelle transaction?

Welcome to the Community, @Fred11_2.

Let me share some information about how you issue a 1099 to a contractor that you paid via Zelle transaction in QuickBooks Online.

Payments to 1099 vendors made via credit card, debit card, or third-party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments, so you don't have to.

Certain payments made to contractors must be reported on the 1099-K form instead of the 1099-MISC or 1099-NEC forms. This includes payments made through third-party processors like Venmo and credit card companies. I suggest contacting Zelle to verify if they can provide a 1099 K.

If you have any questions regarding payments that are processed by a third party and are excluded from 1099-NEC and 1099-MISC, you can either visit the IRS website or contact them directly to seek assistance. To gain more insights on the payments that are excluded, you can refer to the article that covers the same topic.

If you would like to learn more about how to manage 1099s in QuickBooks Online, check out these articles:

• Create and file 1099s using QuickBooks Online
• Modify your chart of accounts for your 1099-MISC and 1099-NEC filing⁠⁠⁠⁠⁠⁠⁠

Feel free to reach out with any questions you may have about 1099 or QuickBooks. We're always here to help you out. Have a great day ahead!