Step 1: Open the Preferences Window Choose Edit, Preferences from the QuickBooks menu. Click the Tax: 1099 icon on the left side of the window. Click on the Company Preferences tab.
Step 2: Turn on the 1099 Feature Click Yes to answer the question",Do you file 1099-MISC forms?"
Step 3: Verify Thresholds and Assign Accounts In the 1099 Category list, verify the threshold amounts that your company uses to determine 1099 status for vendors and contractors. The Federal minimum amounts are already entered, but some companies send 1099 forms even when the thresholds have not been met. You can change any threshold amounts. You can also indicate the accounts you use for 1099 information. For example, if you withhold tax on 1099 amounts, you can enter the account where the tax liability will be reported.
Step 4: Save Your Information When you have finished entering information about your company's 1099 policies, click the OK button and your information will be saved.