Understanding Form 1099-K Tax Reporting
What is Form 1099-K?
Form 1099-K is an IRS tax form that reports payment card and third-party network transactions. As a merchant using our platform, you'll receive this form if you meet the reporting thresholds for the tax year.
Reporting Thresholds
Starting from tax year 2024, you will receive a Form 1099-K if you:
Processed more than $600 in total payments during the calendar year
This includes all payment types: credit cards, debit cards, and other electronic payments
What's Included in Your 1099-K Total?
Your 1099-K reports the gross amount of all payment transactions, which means:
The full amount of payments processed before any fees are deducted
All refunded transactions (even if you refunded the payment)
All types of payment card transactions
Applicable third-party network transactions
Important Dates
Forms will be issued by January 31st following the tax year
You can access your form electronically through your dashboard
Physical copies will be mailed to your provided business address
Understanding Your 1099-K Form
Your form will include:
Your business name, address, and tax identification number
Monthly and annual gross payment transactions
The number of transactions processed
Our platform information as the payment settlement entity
Best Practices
Keep detailed records of your transactions throughout the year
Track your processing fees separately as they can be deducted as business expenses
Ensure your tax information is current in your account settings
Save both electronic and physical copies for your records
Common Questions
Q: Why does my 1099-K amount seem higher than my actual revenue?
A: The 1099-K reports gross transactions before any fees, refunds, or chargebacks. Your actual revenue may be lower due to these adjustments.
Q: What if I process payments through multiple platforms?
A: You may receive multiple 1099-K forms. Each platform will issue their own form for transactions processed through their service.
Q: How do I handle refunds and chargebacks on my tax return?
A: While these are included in your gross 1099-K amount, you can deduct them as business expenses on your tax return.