How to File Form 1099 K Online?
Previously, the income reported on a 1099-K Tax Form was reported on your 1099-MISC and they were not considered different documents. However, after 2008, the two have become separate. Now, the 1099-MISC Form is usually used for payments made to independent contractors and self-employed persons, and the 1099-K Form is used to accurately report how much money you made from card transactions online. You can file through the FIRE (Filing Information Returns Electronically System). If a payment entity has more than 250 individual returns to file in any given tax year, they must all be electronically submitted. Payee statements are due the March 31st of every year. If a payee has given consent, they may receive their documents electronically, although it is standard to mail a paper copy for their records.
The quickest and easiest way to E-file 1099 taxes is to use Tax2efile.Our service provides an easy way to file with flexibility that customers can take advantage of. If you are unable to file on your own or need a little extra help when filing, it is best that you contact a qualified tax preparer who can help you get your documents filed correctly and accurately. Filing your taxes inaccurately can cause future problems for the payer if they aren't done correctly the first time.
If you are a business owner that accepts credit card payments or works through a third-party processor, then the 1099-K Form is the most important form that you should be filing for. If you simply use a card to make online purchases, then this form isn't for you.
Simple steps to E-file Form 1099-K
- Create your free account
- Enter Tax Information
- Submit to IRS
E-file your Form 1099-K
Watch our step-by-step video to E-file Form 1099-K with IRS
Who Must File Form 1099-K?
There are two types of organizations that should look to file Form 1099-K. These organizations are Merchant Acquiring entities, a payment settlement entity, and a third-party settlement organization in which a third-party handles payment between the provider of service and the purchaser. Uber and Airbnb are two examples of third-party settlement organizations. If you work through either of them, you may receive a 1099-K Form.
However, even if you think you might be a TPSO, you may not need to file an IRS 1099-K if you have accounts made for a significant number of unrelated parties, an agreement between you and your sellers to settle payments, standards, and mechanisms for settling transactions and a guarantee that your providers will be paid. You also are only required to issue a 1099-K after processing over 200 transactions and you have paid out over $20,000 to the payee over the tax year. However, because of the confusion surrounding this new form, some organizations have issued 1099-K even though they hadn't met the requirements. If you are unsure whether you need to file one, speak to a tax advisor who can help you get the answers you need about your situation.
When is the Due Date to File Form 1099-K?
Form 1099-K deadline to the IRS is on February 28th for payments reporting through their third-party work transactions and credit card payments. If you are filing electronically, the due date will be March 31st.
|Filing Type ||Deadline |
|Recipient copy ||January 31st |
|IRS Paper Filing ||February 28th |
|IRS Electronic Filing ||March 31st |
Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer will need to E-file 1099 on the next business day.