What is a 1099-K?
The IRS requires Payment Settlement Entities, such as GlossGenius, to report the payment volume received by U.S. account holders. A 1099-K is the information return that is given to the IRS and qualifying customers. Here is a sample 1099-K form.
Do I qualify for a 1099-K?
Your state determines your qualification for a 1099-K. Generally, if you meet both of the following criteria or are in located in one of the below sates, the IRS requires any payment processor (such as GlossGenius) to report on credit card transaction in year :
- More than $20,000 in gross credit card transactions from goods or services in the calendar year
- AND more than 200 credit card transactions in the calendar year
We may be required to report on amounts for the states below for 2021 to meet state and other reporting requirements:
|State & Districts||Threshold|
|District of Columbia||600 USD|
|Illinois||1,000 USD & 4 Transactions|
|Rhode Island||100 USD|
|WV, VA, UT, SC, ND, NJ, MT, MN, ME, KY, IA IN, ID, CO||Required w/ no threshold if withholding|
These reporting thresholds are based on the aggregate gross sales volume processed on all accounts using the same Tax Identification Number (TIN). If you have multiple accounts that use the same TIN, we will aggregate the volume for all accounts to see if you qualify for a Form 1099-K.
For every account that meets the 1099-K requirements, the IRS requires GlossGenius report this information.
Where can I locate my 1099-K?
If you qualify, you will be receiving an email from our payment processor Stripe regarding your 1099-K to the email you signed up with prior to January. Read more about Stripe Express and its tax form management here.
- From this email, you will need to visit the link provided to set up an account and verify your details.
- By the end of January 2022, your 1099 forms are available via Stripe e-delivery.
- If a correction to your documents filed in January requires a correction please reach out to our support team by February 11th.
- April 15, 2022, is the last day to file taxes, keep in mind this date is subject to change by the IRS and we recommend deferring to IRS sources for up-to-date details.
Misplaced your email? Don’t worry our friends at Stripe would be happy to resend this email, just ask here. If you feel the email may need updating, reach out to email@example.com and our team would be happy to help!
How do I submit my 1099-K form?
If you qualify for a 1099-K, GlossGenius is required by law to file a copy of your 1099-K form for your tax year. You should seek the advice of a tax professional with regards to questions about how to file your taxes, GlossGenius cannot provide tax advice.
What charges qualify for a 1099-K? Are cash payments tracked?
Only card payments processed through GlossGenius are eligible for the criteria above. This is a federal regulation that payment processors must comply with. Any payments through GlossGenius accepted in cash, check, or gift card are not reported to the IRS.
Why are the totals from my GlossGenius Sales Report and 1099 a bit different?
Payment Paid-Out Date Versus Checkout Date - As required by the IRS, the card payments on your 1099 are recorded on the date of settlement. This means that they are recorded based on the date the funds became available in your bank account, NOT on the date that the payment was taken. For example, card payments that happened on the 12/31/20 would be included in your 2021 1099 tax form. In comparison, your GlossGenius Sales Report records card payment on the date taken.
Refunded Payments - As required by the IRS, all card payments WILL BE included in the 1099 total even if it was fully or partially refunded. You may reference your GlossGenius Sales Report to see total amounts refunded.
Online gift card purchase - Our Gift Card feature was newly released just last year! This means that the total collected in Gift Cards sales does not appear in your Sales report. The total WILL be on your 1099 as those funds were posted to your bank account.
How will my tax reporting work with the GlossGenius team features?
One of the perks of our Team features is that you can easily add your accountant or tax professional directly to your GlossGenius account with limited access only to your reporting. That way, they can self-serve all the information needed to make tax season a breeze!
In addition to that, we do create a form 1099-K 'Payment Card and Third Party Network Transactions' early in the year for your taxes. The 1099-K will include all of the card transactions processed on your team account and will be reported under the TIN provided. There is not a way of splitting 1099-k for different team members on one account. Typically depending on whether your team members are employees or independent contractors you'll take a different approach with reporting their earnings. Your accountant or tax professional will be able to help you with how to report income earned by independent contractors or employees on your team account.