FAQ ↑ Back to top
What is Form 1099-K? ↑ Back to top
Form 1099-K is an information filing required by the Internal Revenue Service (IRS) of the United States. WooCommerce Payments is required to issue a Form 1099-K to U.S. persons with payments processed that exceed the following thresholds:
- $20,000 gross payments volume, AND
- 200 transactions
Why did I receive a Form 1099-K? ↑ Back to top
We issue a form 1099-K if a merchant meets either the federal filing threshold or a lower threshold applicable in their state. Many states have a lower threshold (as low as $600 in transaction volume with no minimum number of transactions). For 2020, we have filed forms with both the IRS, and applicable state agencies, if either threshold is met.
What if I didn’t meet the IRS threshold, but still got a form? ↑ Back to top
A Form 1099-K may be issued for a few reasons, even if the IRS threshold is not met:
- If a state threshold was met, even if the IRS threshold was not (particularly, for accounts located in DC, IL, MA, MD, MO, MS, NJ, VA, or VT)
|State||Dollar Threshold||Other Nuances|
|IL||$1,000.00||1099 must be issued if there’s $1,000 in TPV and 3 transactions|
- There are multiple accounts with the same tax identification number (TIN). Accounts using the same TIN are combined to determine if filing is required. Even if all accounts are individually below the filing threshold, each account under the same TIN will receive a Form 1099-K if the combined total transaction and payment volumes exceed the threshold.
- A TIN, or Tax Identification Number is the number used for business reporting by the IRS. This may be the owner’s Social Security Number (SSN), or an Employer Identification Number (EIN), which you can get via the IRS website. More information may be found here.
What does the amount on Form 1099-K include? ↑ Back to top
Form 1099-K includes gross sales, without regard to refunds, fees, chargebacks or other reductions.
Why doesn’t the amount reported match the payouts I’ve received? ↑ Back to top
As Form 1099-K is required to include gross sales, it will include amounts that are not paid out, such as
- Disputed charges
- Funds reserved
- Processed charges that have not yet been paid out
How can I reconcile my payouts to my Form 1099-K? ↑ Back to top
A reconciliation between Form 1099-K and payouts/account balance can be requested here.
What if the details on my 1099-K are wrong? ↑ Back to top
If your 1099 contains incorrect information, please contact Stripe directly to have your account updated, at firstname.lastname@example.org, and cc: email@example.com, so that we may assess the need to file a corrected Form 1099.
How do I report the information on my 1099-K? ↑ Back to top
We recommend consulting with your tax advisor for additional information.