What is Form 1099-K?

Form 1099-K is an information filing required by the Internal Revenue Service (IRS) of the United States. WooPayments is required to issue a Form 1099-K to U.S. persons with payments processed that exceed the following thresholds:

You may have questions about receiving your Form 1099-K. This section contains information that will allow you to better determine how and when you may receive your Form 1099-K.

There are two distinct phases of the tax process:

1. The verification phase.
2. The delivery phase.

Verification phase

In November, merchants who are eligible to receive a 1099-K will be sent a verification email from WooPayments and Stripe. This email will have a link for you to confirm:

• Your identity.
• Tax information.
• Delivery method.
  • You will be asked if you consent to e-delivery (meaning you will receive your 1099-K form electronically if you consent).

Should you need to update your information, you can do so via the link in the email. If you have any questions or need help, please reach out to WooCommerce support.

If you are unable to access the link, or you do not consent to eDelivery, you will be mailed a physical 1099-K form.

Delivery phase

Starting in early January of the following year, WooPayments in partnership with Stripe will send you your Form 1099-K. If you consented to e-delivery, your Form 1099-K will be made available to view and download in Stripe Express account dashboard. You’ll need this form to file your taxes. 

In the event that you did not opt in to e-delivery, you will be mailed a physical copy of your Form 1099-K.

Yes! WooPayments partners with Stripe to deliver tax details to eligible merchants.

Yes! Stripe Express e-delivery is secure and compliant with IRS guidelines. This includes:

• Confirming recipient consent.
• Providing an option to withdraw consent and receive a paper copy.
• Making the form accessible via a secure login from February through October.

Please see this document for instructions.

Once you receive your Form 1099-K, you may have questions about its contents why you received it. This section contains information so that you can better understand the Form 1099-K.

A Form 1099-K includes gross sales, without regard to:

• Refunds.
• Fees.
• Chargebacks.
• Other reductions.

We issue a 1099-K if a merchant meets either the federal filing threshold or a lower threshold applicable in their state.

A Form 1099-K may be issued for a few reasons, even if the IRS threshold is not met:

• Many states have a lower threshold than the federal government.
  • A form will be filed if either the state or federal threshold is met.
• There are multiple accounts with the same tax identification number (TIN).
  • Accounts using the same TIN are combined to determine if a filing is required.
  • Even if all accounts are individually below the filing threshold, each account under the same TIN will receive a 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 can be found on the IRS website here.

A reconciliation between Form 1099-K and your payouts and/or account balance can be requested by contacting WooCommerce support.

We recommend consulting with your tax advisor for additional information.

When you receive your Form 1099-K, you may notice that some of the information is incorrect or not what you expected. This section contains some information on steps you can take to make corrections or better understand why the information may not appear as anticipated.

Because a Form 1099-K is required to include gross sales, it will include amounts that are not paid out into your bank account, such as:

• Refunds
• Fees
• Disputed charges
• Funds reserved
• Transactions that haven’t been paid out yet

Some information can be updated via the Stripe Express dashboard, such as:

• Address details
• Name
• Tax ID

Form 1099-K is issued according to how merchants will report the activity of their business. If your account is established as a sole proprietor — even if you have an EIN you use for other purposes within your business — this indicates that:

• You will report the activity on your personal income taxes.
• Your Form 1099-K will be issued using your social security number — not your business’s EIN.

If your income will be reported on a tax return separate from your personal tax return, your Form 1099-K should be issued using the business’s EIN. 

To change from an individual/sole proprietor to a business (or vice versa), please:

1. Contact Stripe directly to have your account updated.
2. Reach out to our support team so we can help resolve the issue.

A corrected Form 1099-K will be filed once your WooPayments account is updated.

Please see this document for instructions on how to log into your Stripe Express account for WooPayments.

From there, you can update various details for your account, including your SSN, email address, home address, etc.

For account updates on your Form 1099-K or additional assistance please reach out to the Stripe Express team. If you need assistance with WooCommerce or WooPayments, please create a ticket.