1099k tax FAQs
- What is a 1099-K tax form?
- Will I receive a 1099-K tax form?
- How can I check how much money I collected in 2024?
- Can I still obtain a 1099-K form even if I don't meet the reporting limits?
- Where and when will my 1099-K form be sent?
- I’d like my 1099-K form to be sent to an address different from my business address. How can I do this?
- What is my tax ID number?
- Is my tax information secure?
- My GoCardless account is closed. Do I still need a 1099-K form?
What is a 1099-K tax form?
The 1099-K form is a report of payments you got during the year from:
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Credit, debit or stored value cards such as gift cards (payment cards)
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Payment apps or online marketplaces (third-party payment networks)
Third-party payment networks are required to file Form 1099-K with the IRS and provide a copy to you when the gross payment amount is above the reporting limit across 200 transactions in the calendar year. While the reporting limit in previous years has been $20k, we expect it to decrease to $5k for 2024, though we are still waiting for confirmation from the IRS.
Please note that the reporting limit includes payment amounts collected before any GoCardless fees, discounts, refunds, or chargebacks were applied.
NOTE: GoCardless is classified as a third party payment network for the purposes of the 1099-K reporting requirements.
For all information on 1099-K reporting, please head to the IRS’ website help page.
The IRS also has a FAQ page, as well as a factsheet to help you.
Will I receive a 1099-K tax form?
The IRS requires that GoCardless provide a 1099-K form to any US-based merchant who in 2024 has:
(i) used GoCardless to collect a gross total that meets the reporting limits specified by the IRS . This will include all payments collected, before any GoCardless fees, discounts, refunds, or chargebacks were applied
and
(ii) processed more than 200 transactions through GoCardless during the year.
Please note that although the reporting threshold was going to be reduced from $20,000 to $600 in 2023, the IRS plans to phase in the reduction with a $5k / 200 transaction limit for the tax year 2024. We are still awaiting confirmation from the IRS.
How can I check how much money I collected in 2024?
GoCardless will provide you with your collected total for 2024. Should you wish to review the amount, you can do so via the GoCardless Dashboard’s Payments tab. Download all the payments to a csv file, by clicking on ‘Export’. Open the file in a spreadsheet application and filter the status column to include rows marked as paid_out and the payout_date column to include rows containing dates between January 1, 2024 - December 31, 2024.
Please note that the transaction reporting limit includes payments amounts collected before any GoCardless fees, discounts, refunds, or chargebacks were applied.
Can I still obtain a 1099-K form even if I don't meet the reporting limits?
Yes, please reach out to our Support team with the subject "1099-K Form Request".
Where and when will my 1099-K form be sent?
You can expect to receive your 1099-K form via USPS mail by the end of January 2025.
This will be sent to the company address we have in our systems.
To ensure you receive your 1099-K in time, please check that your business address and Tax ID number are up to date in the dashboard, by going to Settings Company info Edit Account Details and editing your Business details.
I’d like my 1099-K form to be sent to an address different from my business address. How can I do this?
By default, the 1099-K form will be sent to your company’s address as entered in your Business Details on the dashboard.
If you would like the 1099-K form to be sent to an address different to your company address, please let us know by emailing help@gocardless.com with the subject “1099-K Address Change”.
What is my tax ID number?
A Taxpayer Identification Number (TIN) is a unique 9-digit identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. It is issued either by the Social Security Administration (SSA) or by the IRS.
Your tax ID number will be one of the following, depending on whether you registered with GoCardless as an individual, as sole trader, or a legal entity (such as a company):
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social security number (SSN)
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individual taxpayer identification number (ITIN)
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adoption taxpayer identification number (ATIN)
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employer identification number (EIN)
You can locate your tax ID number on previous documents from the IRS or by contacting the IRS directly.
Is my tax information secure?
Yes, pursuant to regulations, your tax ID number will be anonymised on the 1099-K form that will be issued to you.
My GoCardless account is closed. Do I still need a 1099-K form?
Yes, if your GoCardless transactions met the IRS’ reporting limits before your account was closed, we will be required to send you a 1099-K form.
Please note that the reporting limit includes payment amounts collected before any GoCardless fees, discounts, refunds, or chargebacks were applied.
For any other questions or issues, please reach out to our Support team.