Missing Or Incorrect 1099 Amounts??

If you’ve run your query and 1099 Activity Report and found that the amounts are incorrect, whether too high, too low, or missing altogether, don’t worry because it can be easily adjusted!

How did it happen?
Incorrect 1099 amounts can be caused by a variety of scenarios:

• The vendor was marked as 1099 mid-year and no adjustments were made for prior invoices.
• The Default 1099 Distribution on the vendor record wasn’t set up prior to creating invoices.
  • Unless a default 1099 distribution is set up on the Vendor record, when entering invoices you must manually enter distribution. The default distribution can be viewed, added or modified at the bottom of Vendor tab on the Vendor record by clicking 1099 distribution.
• The Default 1099 Distribution was manually removed from the Invoice before it was paid.
• The 1099 Distribution was entered or modified incorrectly when creating an invoice.

Keep in mind that marking a vendor record as 1099 and setting up 1099 distribution is not retroactive!  If the distribution was set up after invoices were created, an adjustment must be made to correct the 1099 amounts.

How can it be fixed?
Adjustments are made from the Vendor record by clicking the 1099 Adjustments button on the bottom of the Vendor tab. When entering Adjustments, select any date in the reporting calendar year as the effective date, the appropriate box number, and State (if applicable).
In the amount column, enter a positive number to increase or a negative number decrease the 1099 values by a specific amount.
Note: You are entering only how much you are increasing or decreasing the total amount, not the total amount for the Vendor for the year. After clicking OK and choosing to Save and Close the Vendor, you can see the updated amounts by running a 1099 activity report.
You can enter as many adjustments as you’d like, but you can just enter one adjustment as a lump sum for the change instead of an adjustment for each invoice record.
 
For additional information please see the following links and be sure to click ‘Subscribe to this Blog’ at the top right to keep up to date with all of the latest Tax Season tips and information!
End of Year FAQ’s
Community Tax Season homepage
1099 Adjustment Wizard
 
Have you registered Aatrix yet?  Make sure your Aatrix registration is up to date before printing your Tax Forms!