Set up 1099 form rules

Set up rules for your contractor expenses so they automatically record to a 1099 form, ready for filing at the end of the tax year.

How it works

  • You must have the Advisor role to set up 1099 form rules.
  • Xero uses your rules to search for transactions to add to the contractor's 1099 form. It filters out payments made by credit card or third-party services, such as PayPal. It also excludes expense claims.
  • You can add up to 12 rules. For example, you might add separate rules for rent paid to a landlord and legal fees paid to an attorney.

Add 1099 form rules

  1. In the Reports menu, select All Reports.
  2. Under Tax, click 1099 Report.
  3. Select the report year.
  4. Click Set up 1099 Rules.
  5. Set up rules to find 1099 contractors and expenses. Under:
  6. (Optional) Click Add rule to add more 1099 rules.
  7. Click Save.