How To Setup a Data File and Create a Report To Track Form 1099-MISC Information

If you make payments to independent contractors or other self-employed persons during the course of your business, the IRS requires you to file a Form 1099-MISC showing the total of such payments to each individual for the appropriate tax year.

Unlike QuickBooks, Quicken does not include a Form 1099-MISC report, nor will it print information onto blank 1099-MISC forms. However, Quicken can create a report showing payment information needed to complete Form 1099-MISC if the data file has been correctly set up to track this information. We recommend that you use one of the following procedures for setting up the data file to track Form 1099-MISC information:

Procedure 1: Use a generalized category (such as "Compensation") and then set up each contractor or Form 1099-MISC recipient as a Quicken tag. The tag then tracks reportable Form 1099-MISC payments to each contractor. This versatile procedure uses Quicken's tag capability to set up each potential Form 1099-MISC recipient as a separate tag with minimal interference to already established methods for tracking payments, expenses, and so forth. To set up the tags:

  1. From the Quicken Tools menu, choose Tag List.
  2. Click New.
  3. Enter a Name for the contractor or Form 1099-MISC recipient.
  4. Enter an optional Description. This description will only appear in the Tag List window, and it cannot be used to generate any reports.
  5. Click OK, and then repeat Steps 2 through 5 until you have created a tag for each potential Form 1099-MISC recipient.

From this point forward, each time a payment is made to a contractor or other Form 1099-MISC recipient, enter the appropriate tag in the Category field of the account register. To credit a tag, add a forward slash (/) and then the tag name following the category or transfer account. If necessary, click the Split button to credit the correct Form 1099-MISC amount to the recipient.

At the close of a year where Form 1099-MISC information has been tracked as indicated above, create a report showing the necessary income amounts to place on the Form 1099-MISC:

  1. From the Quicken Reports menu, choose Banking, and then choose Transaction.
  2. Click Customize.
  3. Select the appropriate Date Range. Selecting Last Year from the drop-down list will set the date range from the first to last days of the prior year.

    Caution: If you set the Quicken preference for a fiscal (instead of calendar) year, Last Year will set the date range to the prior fiscal year rather than calendar year. Form 1099-MISC is required to show compensation over a calendar year.

  4. Click the Display tab, and then type Form 1099 Report (or similar) in the Title field.
  5. Select Tag from the Subtotal By drop-down list, and then click the Accounts tab.
  6. Select all accounts that were used to make payments to Form 1099-MISC recipients (accounts with checkmarks are already selected), then click the Tag tab.
  7. Select each tag that identifies a Form 1099-MISC recipient.
  8. Click OK. The individual tag totals on this report are the Form 1099-MISC income amounts.

Procedure 2: Set up each contractor or Form 1099-MISC recipient as a subcategory of a new or existing category, and then use that subcategory to record compensation that would be reported on Form 1099-MISC. This procedure assumes payments to contractors are already being credited to an expense category or categories. It creates subcategories that identify and can be used to track Form 1099-MISC payments to specific contractors or other self-employed persons. To set up such subcategories:

  1. From the Quicken Tools menu, choose Category List.
  2. Click New.
  3. Enter a Name for the contractor or Form 1099-MISC recipient, along with an optional Description.
  4. Select Subcategory of, and then select the main expense category from the drop-down list to the right. If using category groups, also select the correct group from the Group drop-down list.

    Note: Do not select the Tax-related checkbox.

  5. Click OK, and then repeat Steps 2 through 5 until you have created a subcategory for each potential Form 1099-MISC recipient.

From this point forward, each time a payment is made to a contractor or other Form 1099-MISC recipient, enter the appropriate subcategory in the Category field of the account register. If necessary, click the Split button to credit the correct Form 1099-MISC amount to the recipient.

At the close of a year where Form 1099-MISC information has been tracked as indicated above, create a report showing the necessary income amounts to place on the Form 1099-MISC:

  1. From the Quicken Reports menu, choose Banking, and then choose Transaction.
  2. Click Customize.
  3. Select the appropriate Date Range. Selecting Last Year from the drop-down list will set the date range from the first to last days of the prior year.

    Caution: If you set the Quicken preference for a fiscal (instead of calendar) year, Last Year will set the date range to the prior fiscal year rather than calendar year. Form 1099-MISC is required to show compensation over a calendar year.

  4. Click the Display tab, and then type Form 1099 Report (or similar) in the Title field.
  5. Select all accounts that were used to make payments to Form 1099-MISC recipients (accounts with checkmarks are already selected). When finished, click the Categories tab.
  6. Select each subcategory that identifies a Form 1099-MISC recipient.
  7. Click OK. The individual subcategory totals on this report are the Form 1099-MISC income amounts.

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