Why are vendor payment methods important for 1099s?

At the time of this release, payments made by credit card, debit card, payment card, or a 3rd party payment processor, such as Paypal, are required to be reported on a 1099-K form by the processing company. Therefore, you should not include these payments when generating 1099s since they have already been reported.

In Sage 50, you can filter your 1099s to only include payments made with certain payment methods. Be sure to select the correct payment method when entering payments.

Note: For the most up-to-date information regarding 1099 requirements, visit www.irs.gov or contact your accountant.