Tag a non-1099 transaction for 1099 treatment after the fact

If a transaction has already been entered with missing or incorrect 1099 information, the way you correct it depends on the transaction status and how many transactions you need to update.

After making corrections, run the 1099 report to verify the changes.

Initially setting up a vendor or employee for 1099 treatment does not automatically update existing transactions that were not previously tagged for 1099 treatment.
I need to...Use
Update one unpaid transaction

Find the transaction and select the 1099 checkbox for each line item.

Update one paid or partially paid transaction

Reclassify the transaction.

Update transactions in bulk for multiple vendors or employees

Use the 1099 transaction update template.

Tag transactions for 1099 treatment

  1. Verify that the vendor or employee is set up for 1099 treatment.

  2. Use the appropriate correction method based on the transaction status:

    1. For an unpaid transaction, edit the transaction and select the 1099 checkbox for the applicable line.

    2. For a paid or partially paid transaction, reclassify the transaction.

    3. For bulk updates, use the 1099 transaction update template.

Correct the form or box on an existing transaction

If a transaction is already tagged for 1099 treatment but has the wrong form or box, correct the transaction using the appropriate method for its status.

For multiple records, see Update existing 1099 transaction data with an import file.

  1. Verify that the vendor or employee is set up for 1099 treatment.

  2. Use the appropriate correction method based on the transaction status:

    1. For an unpaid transaction, edit the transaction and change the 1099 form and box for the applicable line.

    2. For a paid or partially paid transaction, reclassify the transaction.

    3. For bulk updates, use the 1099 transaction update template.

Verify your changes

Run the 1099 report report after making corrections. Verify that:

  • The affected transaction appears as expected.

  • The transaction is assigned to the appropriate 1099 form and box.

  • The reported amount is correct.