1099 Paid by Credit Card (US Books ONLY)

1099 Paid by Credit Card (US Books ONLY)

Q: IRS requires us to exclude credit card payments to vendors on our 1099's but they are included in Soluno. I have the credit card set up as a bank account. How do I fix this issue for this one vendor?

A: You do not need to include payments made by credit card because the credit card company will send the vendor a 1099-K. In Soluno, continue to enter the vendor invoices as usual. At the end of the year, before finalizing the 1099, add the negative amount of the total paid by credit card to the Vendor record (in the Vendor Contact information).

For example: if the balance is $600 and $300 was paid by credit card then you put in the amount paid by credit card with a negative sign in front of it. That is if balance is 0. If the balance is $700 and $300 were paid by credit card, then balance will be $400. You subtract the amount paid by credit card with the balance.