how do I correct 1099 misc?

I filled 1099 Misc with QB I put the income in box 7 but vendors are saying IRS wants it in box 3.

How do I correct this?


If the IRS wants it in Box 3 it must not be normal sub contractor payment for services fro someone who is not an employee. I have included the full text of what the IRS wants and does not want in Box 3. However, QB only will enter information for Box 7. What you have to do to correct a 1099 is download the free from from (or buy a forms packet at Staples/Costco/etc.) make the corrective entry, mark it as corrected and find another way to submit the corrected (or non box 7) form, electronically or by mail.

Box 3. Other Income Enter other income of $600 or more required to be reported on Form 1099-MISC that is not reportable in one of the other boxes on the form. Also enter in box 3 prizes and awards that are not for services performed. Include the fair market value (FMV) of merchandise won on game shows. Also include amounts paid to a winner of a sweepstakes not involving a wager. If a wager is made, report the winnings on Form W-2G. Instructions for Form 1099-MISC (2019) -5- Page 6 of 11 Fileid: … /I1099MISC/2019/A/XML/Cycle05/source 13:29 - 19-Nov-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. If, not later than 60 days after the winner becomes entitled to the prize, the winner can choose the option of a lump sum or an annuity payable over at least 10 years, the payment of winnings is considered made when actually paid. If the winner chooses an annuity, file Form 1099-MISC each year to report the annuity paid during that year. Do not include prizes and awards paid to your employees. Report these on Form W-2. Do not include in box 3 prizes and awards for services performed by nonemployees, such as an award for the top commission salesperson. Report them in box 7. Prizes and awards received in recognition of past accomplishments in religious, charitable, scientific, artistic, educational, literary, or civic fields are not reportable if: • The winners are chosen without action on their part, • The winners are not expected to perform future services, and • The payer transfers the prize or award to a charitable organization or governmental unit under a designation made by the recipient. See Rev. Proc. 87-54, 1987-2 C.B. 669. Other items required to be reported in box 3 include the following. 1. Payments as explained earlier under Deceased employee's wages. 2. Payments as explained earlier under Indian gaming profits, payments to tribal members. 3. A payment or series of payments made to individuals for participating in a medical research study or studies. 4. Termination payments to former self-employed insurance salespeople. These payments are not subject to self-employment tax and are reportable in box 3 (rather than box 7) if all the following apply. a. The payments are received from an insurance company because of services performed as an insurance salesperson for the company. b. The payments are received after termination of the salesperson's agreement to perform services for the company. c. The salesperson did not perform any services for the company after termination and before the end of the year. d. The salesperson enters into a covenant not to compete against the company for at least 1 year after the date of termination. e. The amount of the payments depends primarily on policies sold by the salesperson or credited to the salesperson's account during the last year of the service agreement or to the extent those policies remain in force for some period after termination, or both. f. The amount of the payments does not depend at all on length of service or overall earnings from the company (regardless of whether eligibility for payment depends on length of service). If the termination payments do not meet all these requirements, report them in box 7. 5. Generally, all punitive damages, any damages for nonphysical injuries or sickness, and any other taxable damages. Report punitive damages even if they relate to physical injury or physical sickness. Generally, report all compensatory damages for nonphysical injuries or sickness, TIP such as employment discrimination or defamation. However, do not report damages (other than punitive damages): a. Received on account of personal physical injuries or physical sickness; b. That do not exceed the amount paid for medical care for emotional distress; c. Received on account of nonphysical injuries (for example, emotional distress) under a written binding agreement, court decree, or mediation award in effect on or issued by September 13, 1995; or d. That are for a replacement of capital, such as damages paid to a buyer by a contractor who failed to complete construction of a building. Damages received on account of emotional distress, including physical symptoms such as insomnia, headaches, and stomach disorders, are not considered received for a physical injury or physical sickness and are reportable unless described in (b) or (c) above. However, damages received on account of emotional distress due to physical injuries or physical sickness are not reportable. Also report liquidated damages received under the Age Discrimination in Employment Act of 1967. Taxable back pay damages may be wages and reportable on Form W-2. See Pub. 957. Foreign agricultural workers. Report in box 3 compensation of $600 or more paid in a calendar year to an H-2A visa agricultural worker who did not give you a valid TIN. You also must withhold federal income tax under the backup withholding rules. For more information, go to and enter “foreign agricultural workers” in the search box. Account reported under FATCA. If you are an FFI reporting pursuant to an election described in Regulations section 1.1471-4(d)(5)(i)(A) a U.S. account required to be reported under chapter 4 to which during the year you made no payments reportable on an applicable Form 1099, enter zero in box 3. In addition, if you are an FFI described in the preceding sentence and, during the year, you made payments to the account required to be reported under chapter 4, but those payments are not reportable on an applicable Form 1099 (for example, because the payment is under the applicable reporting threshold), you must report the account on this Form 1099-MISC and enter zero in box 3

Was this answer helpful? Yes No
Default user avatars original

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.