E-File 1099 Forms in QuickBooks Online (QBO): Step-by-Step Guide

Steps to Issue 1099 Forms

• Obtain taxpayer information: Gather the recipient’s name, address & Tax Identification Number (TIN). For individuals, it is usually a Social Security Number (SSN); for businesses, it’s an Employer Identification Number (EIN). W9 has all this info.

• Determine the amount to be reported on Form 1099: Calculate total reportable payments, excluding amounts paid via credit cards or third-party payment processors.

• Use the correct 1099 Form type: Ensure you are using the correct type of 1099 form for the specific type of payments being reported, such as 1099-MISC for miscellaneous payments, 1099-NEC for non-employee compensation, etc.

• Submit Forms: File the 1099 forms with the IRS and send a copy to the recipients. You may also need to file with your state tax department, depending on local requirements.

Determine the amount to be reported in 1099s

Identify total payments made via Bank (Calendar Year Basis)

• Include - Payments made via bank (cash, cheque, transfer, ACH, direct deposit)

• Exclude - Payments made via credit cards

A Form 1099 is generally required when total eligible payments exceed $600 during the calendar year. Starting with payments made on or after January 1, 2026, the reporting threshold for Forms 1099-NEC and 1099-MISC increases to $2,000 per contractor or vendor (reported in 2027).

Verify whether the expense type is 1099-Reportable

• Include - Payments made for contractor services, professional fees, subcontractor work, rent, legal fees, etc.

• Exclude - Payments for goods/materials, reimbursements, subscriptions, utilities, or employee wages.

Verify vendor type & eligibility

• Include - Issue 1099 only to individuals, sole proprietors, partnerships, and eligible LLCs.

• Exclude - Corporations and INC entities (except attorneys—legal payments are always reportable). 

Steps to E-File 1099 Forms in QuickBooks Online

Step 1: Verify Company Information    

Accounts & Settings→Company

Enter or confirm the company EIN, legal name, and address for IRS filing.

Step 2: Verify Vendor’s Information

Expenses → Vendors

Review the vendor’s  Name, address, EIN , etc., before 1099  preparation ,and ensure to tick “Track payments for 1099.”

Step 3: Start 1099 Wizard

Taxes → 1099 Filings

Prepare 1099s to begin the workflow

Step 4: Map Chart of Accounts

Select expense categories to specific 1099 boxes.

 Step 5: Review Vendor Payments

ǪBO shows eligible vendors and payment totals. Adjust if required.

Step 6: E-File with IRS

Select E-File and make the payment.

 Step 7: Check filing status

Taxes→1099 Filings.

Status will change to "Accepted" after sometime (say 1 day) of e-filing.