What payments are excluded from a 1099-NEC and 1099-MISC?

Learn which payments should be excluded from the 1099-MISC and 1099-NEC form.

The IRS requires that certain contractor payments should not be included on the 1099-MISC and 1099-NEC form and are instead reported on the 1099-K form.

Small businesses don’t file form 1099-K. It is required for third-party payment processing companies, banks, credit card processors, etc. to file.

For more information about the payments that you shouldn’t report, review the IRS instructions for Form 1099-K and the IRS Third Party Reporting Information Center.

If you need a 1099-K from Intuit, see Intuit 1099-K Form.

Ready to file your 1099s, see What is a 1099 and do I need to file one?

Which payments are excluded from the 1099-MISC and 1099-NEC form? #

Payments to 1099 vendors made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments, so you don’t have to.

Where can I find the payment information? #

Choose your product to determine what payments are excluded.

QuickBooks Online #

QuickBooks Desktop #

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