Correcting 1099s in QuickBooks Online

This post explains how to fix your 1099s in QuickBooks Online after you’ve already filed them with the IRS.

Here are the main things you should know about how this works.

Important Rules for Correcting 1099s

You need to correct your 1099s the same way you filed them. If you e-filed, you must e-file the corrections. Only send corrections after the IRS has accepted your original form. Check the status under Taxes, then 1099 filings. QuickBooks Online lets you fix 1099 boxes, box amounts, form types, and contractor details like name or tax ID. If you update an address in QuickBooks, you don’t need to file a 1099 correction, since the IRS doesn’t treat address changes as corrections and they won’t show up on the corrected form. For state corrections, contact the state directly. For more on IRS rules, visit irs.gov.

The Correction Process Overview

To start, go to Taxes, then 1099 filings, and click Correct next to the form you want to fix. Make sure the form’s status is Accepted first. You can only correct one form at a time. First, check that your company’s information hasn’t changed, since the corrected form must match the original. Next, review and update the accounts and boxes for your contractor payments. You can remove an account, or if you need to void the 1099, remove all box mapping. Use Select Accounts or the dropdown menus to change which accounts or 1099 boxes are used. Remember, changing these may affect other 1099 forms, so check those as well.

Then, check the contractor’s details and the corrected payment total. If any contractor info is wrong, click Edit to fix it. If the corrected payment is below the 1099 threshold, it will show as $0.00. If the total is still off, you may need to run reports and fix the original transactions before coming back to the form. After you review each 1099 box amount and preview the draft if you want, move on to the state filing section. If your state accepts combined federal and state 1099s, QuickBooks will correct both. If your state needs separate filings, QuickBooks will only correct the federal form, and you’ll need to handle the state filing yourself.

What Happens Next

When you’re ready, click E-File corrected form. QuickBooks won’t send corrected 1099s to your contractors, so you’ll need to give them a copy yourself. After you finish, you can click View & print 1099s or go to Taxes, then 1099 filings, anytime to print the corrected forms and find instructions for contractors who need state 1099 corrections.