1. Documentation
  2. WooCommerce Payments
  3. WooCommerce Payments FAQs

What is Form 1099-K?

What is the 2021 Tax Process? ↑ Back to top

This year we have a few changes to the process for issuing your 1099-K. The process is outlined below. We have built WooCommerce Payments in partnership with Stripe thus please expect some communication from Stripe for issuing your 1099-K.

Verification Phase  – On or around January 5, 2022 merchants who are eligible to receive form 1099-K will receive a verification email from WooCommerce Payments and Stripe. This email will have a verification link for you to confirm your identity as well as provide you with the option for consent to e-delivery. E-delivery means you will receive your 1099-K form electronically. 

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.

Pre-Delivery – Once you have confirmed your information is accurate and correct, you will receive another email which you can preview your 1099-K form for accuracy. Its important to verify:

  • Your name
  • Your mailing address
  • Your TIN/EIN/SSN 

Delivery Phase – Once we file your 1099-K with the IRS, you will then receive your 1099-K. Note, if you’ve consented to receive it electronically, it will be sent via email. If you did not consent, you will receive a hard copy in the mail. Please note that due to delivery delays with the postal service we cannot confirm when you will receive it. If you have any questions please reach out to WooCommerce Support and we will be happy to help. 

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

Additional information can be found on the IRS website here.

We recommend consulting with your tax advisor for additional information and to understand which threshold applies in your state.

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.

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:

  • Many states have a lower threshold (as low as $600 in transaction volume with no minimum number of transactions). 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 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

  • Refunds
  • Fees
  • 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, please reach out to the Stripe Express team https://support.stripe.com/express/contact/email; You can also contact tax-support@woocommerce.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.

FAQ’s ↑ Back to top

How do I change the email address associated with this account? ↑ Back to top

You can update your email address associated with your account by following steps:

  1. Go to Payments > Settings.
  2. Click Manage in Stripe to be taken to Stripe.com
  3. Enter the account verification code, if prompted.
  4. Click the Profile section to update your email address.
  5. Click the pencil icon in the email section.
  6. Enter the new email in the Email field.
  7. Click Save.
  8. Click Done.
  9. Optional: click Sign out to return to your WooCommerce dashboard.

Is the email from Stripe legitimate? ↑ Back to top

Yes, WooCommerce Payments partners with Stripe to deliver Tax details to eligible customers.

How do I update my bank account or debit card on my account? ↑ Back to top

  • Go to Payments > Settings.
  • Click Manage in Stripe to be taken to Stripe.com
  • Enter the account verification code, if prompted.
  • Click the Payout Details to update your bank account details. 
  • Click the pencil icon in the Payout section.
  • Enter the account verification code, if prompted.
  • Enter the new bank account or debit card details. 
  • Click Save.
  • Click Done.
  • Optional: click Sign out to return to your WooCommerce dashboard.

I haven’t claimed my account yet and I think the information on my account is wrong. How do I change it so I can claim my account? ↑ Back to top

You can update your account-related details in your WooCommerce Payments settings screen:

  • Go to Payments > Settings.
  • Click Manage in Stripe to be taken to Stripe.com
  • Enter the account verification code, if prompted.

From here, you can update various details with regards to your account including your SSN, email address, home address etc…

For account updates on your 1099-K or additional assistance please reach out to the Stripe Express team https://support.stripe.com/express/contact/email; if you are needing assistance with WooCommerce please create a ticket. 

How do I contact Stripe Express? ↑ Back to top

If you have questions for the Stripe Express team regarding your taxes, or the process you can visit https://support.stripe.com/express/contact/email to get support. If you have any other questions, please feel free to reach out to WooCommerce.com support and we can help.

Is e-Delivery Secure? ↑ Back to top

For those who have opted in to receive e-delivery, Stripe Express e-delivery is secure and compliant with IRS guidelines. This includes 1) confirming recipient consent 2) providing an option to withdraw consent and receive a paper copy and 3) the 1099 form is accessible on a secure login website from Jan 31st through October. 

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