Debit or credit card payment transactions
In settlement of third-party payment networks (online sellers) above the minimum reporting thresholds of
– Gross payments that exceed $20000 and
– More than 200 transactions
Reporting Income on the 1099-K Form
Any amounts shown on Form(s)1099-K should be included in gross receipts or sales from all business operations. If you get a Form 1099-K for amounts that belong to another person or are a co-owner who may need to file a Form 1099-K or other information returns for other owners check the General Instructions for certain Information Returns.
If you are an independent contractor the trade or business should continue to report payments made to you on Form 1099-MISC as they have done in the past. Form 1099-K only reports payments by debit or credit card payment transactions and should not be included in the 1099-MISC. If those payments are not included then gross receipts should include the 1099-K and 1099-MISC.
Be sure that your merchant card or third-party clearing house has your correct Taxpayer Identification Number (TIN) by checking the TIN on Form 1099-K against the TIN you reported on Form W-9.
For More Information on the 1099-K
If you have questions about the amount reported contact the filer located in the upper left corner of Form 1099-K. If you have questions about the merchant or third party network reach out to the contact that is located in the lower left corner of Form 1099-K.
Lindemeyer is here to assist with any filing questions or preparation you might need. If you need additional information or help with filing a 1099-K or other tax form contact us and we will be happy to assist with any tax needs you might have.