Use this window to define and maintain income types. Income types are used to report income on the company or customer level, and to categorize payments to suppliers for tax reporting and/or withholding purposes. The appropriate supplier income types are defined for each supplier on the Supplier/Invoice tab. Supplier income types can be defined for each invoice line.
The type of payment and total amount paid to a supplier determine whether payments to that supplier must be reported to the appropriate tax authority, and whether taxes must be withheld on those payments. Income types are unique to each country.
When the system is installed, the income types used in the United States are predefined. These types correspond with the Form 1099 types defined by the IRS. You cannot change these types, although you can edit the descriptions and threshold amounts. You can specify additional income types to accommodate changes in U.S. tax law or the tax reporting and withholding requirements of other countries. The predefined Form 1099 types are shown in the table below.
| Income Type ID | Description |
| 1 | Rents |
| 2 | Royalties |
| 3 | Other income |
| 5 | Fishing boat proceeds |
| 6 | Medical and health care payments |
| 7 | Non employee compensation |
| 8 | Substitute payment in lieu of dividends or interest |
| 9 | Payer made direct sales of $5,000 of consumer products to a buyer (recipient) for resale |
| 10 | Crop insurance proceeds |
| 13 | Excess golden parachute payments |
| 14 | Gross proceeds paid to an attorney |