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L
loran-acmeelectr
January 26, 2023
Solved

How do I fix a contractor's missing 1099 or wrong amount in QuickBooks Online?

  • January 26, 2023
  • 4 replies
  • 47 views
I have contractors that have wrong 1099 amounts.  I tried to run the transactions by vendor, but the contractors don't show up as vendors.   I need to find out how the missing transactions were recorded and correct them so the 1099 is right.
Best answer by cody_a

If a contractor isn't showing up in your vendor list, or their 1099 amount looks off, it's usually because they're not marked active and eligible for 1099 tracking. Once that's fixed, the vendor reports and 1099 totals fall back in line. Here's how to work through it.

Step 1: Make sure the contractor is active and set up for 1099 tracking

Contractors who aren't active, or who aren't flagged for 1099 tracking, won't show up when you're creating 1099s or running vendor reports. 

  • If you're already in the middle of creating 1099s, on the Review your contractor's info window, select Add from vendor list and choose the vendor.
  • If you're not creating 1099s yet, run a report to see which vendors are set to track 1099s:
  1. Go to Reports, then Standard reports.
  2. Search for Vendor Contact List and open it.
  3. Select Customize.
  4. Under Rows/Columns, select Change columns and mark Track 1099.
  5. Under Filters, select Deleted and change the dropdown to All.
  6. Select Run report, then sort by Track 1099 to spot anyone missing.
  • If a vendor shows up but is inactive, select their name and choose Make active.
  • If a vendor shows No under Track 1099, select their name, go to Vendor details, select Edit, mark Track payments for 1099, then Save.
  • If you already know which vendor needs updating, go to Expenses & Bills, then Vendors, select the contractor, select Edit, mark Track payments for 1099, then Save.


Step 2: Confirm the contractor met the $600 payment threshold

QuickBooks only includes contractors on a 1099 if you paid them more than $600 in cash equivalents for the year. Credit card payments don't count toward this, since your payment processor reports those separately.

  1. Go to Expenses & Bills, then Contractors.
  2. Select Prepare 1099s and continue to the Check that the payments add up window.
  3. Use the filter dropdown at the top of the table and switch to 1099 contractors below threshold to see who didn't meet it.


Step 3: Check which expense accounts the payments were tied to

1099 totals are pulled from whichever expense accounts you've mapped for 1099 reporting. If a contractor's amount looks wrong, this is usually where the mismatch is hiding.

  1. Go to Reports, then Standard reports.
  2. Search for and open Transaction List by Vendor.
  3. Select Customize and set the report period to Last calendar year.
  4. Under Rows/Columns, select Change columns and mark Split.
  5. Under Filters, check the Vendor box and choose the contractor in question.
  6. Select Run report, then look at the Splits column for the accounts tied to each transaction. If it says "SPLIT," open the transaction to see the full breakdown of expense accounts affected.


If the IRS has already accepted your original 1099 forms, you'll file a correction rather than editing the original. Confirm the form's status shows Accepted under 1099 filings, update the contractor's info in QuickBooks first, then select Correct next to the form to e-file the fix. For full steps, including what to do for wrong amounts, wrong TINs, or below-threshold corrections, check out this article: Correct or change 1099s 

More on this topic: Troubleshoot missing contractors or wrong amounts on 1099s

Let me know if any of these steps don't match what you're seeing and I can take a closer look.

4 replies

MaryLandT
MaryLandT
Level 10
January 26, 2023

Let's make sure your contractor is active and set up for 1099 tracking, loran-acmeelectr. That way, they'll show up when you're creating 1099s.

 

There's a possibility that the contractor isn't active or marked as eligible for 1099. That's why it's missing from the list. Here's where to check on that and what 1099 reports you can create.

 

If you're in the middle of creating 1099s, click the Add from Vendor list button, and choose the appropriate vendor on the Review Your Contractor’s Info window

 

If you're not creating 1099s, create this 1099 report to see which vendors are set to track 1099s. Then, you can change their status.

 

  1. Go to Reports.
  2. Search for Vendor Contact List and open the report.
  3. Click Customize.
  4. In the Rows/Columns section, hit Change columns, then mark the Track 1099 checkbox.
  5. In the Filters section, select Deleted and change the ▼ drop-down to All.
  6. Click Run Report.
  7. Select Sort and under Sort by choose Track 1099.
     

If you see a missing vendor, you can change their status, or continue to the next step.

 

  1. Click their name.
  2. Choose Make Active.
     

If they have No under Track 1099.

  1. Click the name.
  2. Go to Vendor Details.
  3. Click Edit ✎.
  4. Mark the Track payments for 1099 checkbox, then select Save.

 

When you already know what vendor to update, change their 1099 status.

 

  1. Go to Get paid & pay  and choose Vendors.
  2. Select the contractor you want to convert, then select Edit ✎.
  3. Mark the Track payments for 1099 checkbox, then Save.

If they are missing from the Vendor list, they may be inactive.

 

  1. Above the Action column, select Settings ⚙.
  2. Mark the Include inactive checkbox.
  3. Next to the missing vendor, choose Make active.

 

You'll also make sure your payments to this contractor meet the threshold. Only those contractors paid above the annual $600 cash threshold get 1099. Please browse this article to find more details about this: Fix missing contractors or wrong amounts on 1099s. It'll tell you what report to use and how to review the contractor payment transactions and accounts associated with them.

 

Once everything looks good, you can start creating and filing 1099s in QuickBooks Online.

 

That should help you correct the amount and get the contractor added to the 1099 lists. Get back to me if you have follow-up questions about this. I'm always around here in the Community to help you. Have a good one!

A
acarroll70
November 21, 2024

I followed these instructions, but the vendor is not showing on the 1099 summary report. The vendor was paid prior to selecting the track the 1099.

A
Aldren18QuickBooks Team
QuickBooks Team
November 21, 2024

I appreciate you bringing your 1099 report concerns to our attention, Acarroll. Our engineering team is actively investigating this issue to identify the underlying reasons for these discrepancies, and I'll ensure you receive timely updates on the progress.

 

While we work towards a solution, I encourage you to contact our dedicated support team to add you as an affected user. They will securely collect your contact information so you can receive updates directly via email.

 

Here’s how you can get in touch with them:

 

  1. Access the Help menu at the upper right corner of your Quick Books Online dashboard.
  2. Type Contact Support in the search tab and press enter.
  3. Select Contact Us at the bottom of the screen.
  4. In the Ask about something else section, enter the issue.
  5. Hit on Continue and choose a way to connect with us.

 

To expedite the process, please provide this investigation number: 114440.

 

Our customer service hours for Plus, Essentials, and Simple Start are Monday through Friday from 6 AM to 6 PM PT and Saturday from 6 AM to 3 PM PT. Advanced support is available 24/7.

 

Additionally, I'd like to share a helpful guide on how to email, print, and export generated reports in QuickBooks Online. You can access the relevant section by clicking this hyperlink and navigating to the Manage Your Reports section: Run a report in QuickBooks Online.

 

Accurate financial records are vital for your business, and we appreciate your patience as we diligently work to resolve this issue. If there’s anything else regarding 1099 that you need assistance with, please let us know through this channel. My team and I are here to support you.

cody_a
cody_aCommunity ManagerAnswer
Community Manager
August 21, 2026

If a contractor isn't showing up in your vendor list, or their 1099 amount looks off, it's usually because they're not marked active and eligible for 1099 tracking. Once that's fixed, the vendor reports and 1099 totals fall back in line. Here's how to work through it.

Step 1: Make sure the contractor is active and set up for 1099 tracking

Contractors who aren't active, or who aren't flagged for 1099 tracking, won't show up when you're creating 1099s or running vendor reports. 

  • If you're already in the middle of creating 1099s, on the Review your contractor's info window, select Add from vendor list and choose the vendor.
  • If you're not creating 1099s yet, run a report to see which vendors are set to track 1099s:
  1. Go to Reports, then Standard reports.
  2. Search for Vendor Contact List and open it.
  3. Select Customize.
  4. Under Rows/Columns, select Change columns and mark Track 1099.
  5. Under Filters, select Deleted and change the dropdown to All.
  6. Select Run report, then sort by Track 1099 to spot anyone missing.
  • If a vendor shows up but is inactive, select their name and choose Make active.
  • If a vendor shows No under Track 1099, select their name, go to Vendor details, select Edit, mark Track payments for 1099, then Save.
  • If you already know which vendor needs updating, go to Expenses & Bills, then Vendors, select the contractor, select Edit, mark Track payments for 1099, then Save.


Step 2: Confirm the contractor met the $600 payment threshold

QuickBooks only includes contractors on a 1099 if you paid them more than $600 in cash equivalents for the year. Credit card payments don't count toward this, since your payment processor reports those separately.

  1. Go to Expenses & Bills, then Contractors.
  2. Select Prepare 1099s and continue to the Check that the payments add up window.
  3. Use the filter dropdown at the top of the table and switch to 1099 contractors below threshold to see who didn't meet it.


Step 3: Check which expense accounts the payments were tied to

1099 totals are pulled from whichever expense accounts you've mapped for 1099 reporting. If a contractor's amount looks wrong, this is usually where the mismatch is hiding.

  1. Go to Reports, then Standard reports.
  2. Search for and open Transaction List by Vendor.
  3. Select Customize and set the report period to Last calendar year.
  4. Under Rows/Columns, select Change columns and mark Split.
  5. Under Filters, check the Vendor box and choose the contractor in question.
  6. Select Run report, then look at the Splits column for the accounts tied to each transaction. If it says "SPLIT," open the transaction to see the full breakdown of expense accounts affected.


If the IRS has already accepted your original 1099 forms, you'll file a correction rather than editing the original. Confirm the form's status shows Accepted under 1099 filings, update the contractor's info in QuickBooks first, then select Correct next to the form to e-file the fix. For full steps, including what to do for wrong amounts, wrong TINs, or below-threshold corrections, check out this article: Correct or change 1099s 

More on this topic: Troubleshoot missing contractors or wrong amounts on 1099s

Let me know if any of these steps don't match what you're seeing and I can take a closer look.

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