The 1099-K is a new-ish form that the IRS mandates gateways processors send to some of their users. It is an information form – so you don’t have to do anything with it specifically, but you should keep it with all your tax records.
The 1099-K will be sent to you by your payment gateway if:
- You are based in the US
- AND you processed more than 200 transactions
- AND you processed at least $20,000
If you don’t meet all three of the criteria, you will not get the form.
None of the information will be unique – it should all be tracked within FreshBooks (or whichever accounting software you use) but your 1099-K is still be a handy guide to make sure you’ve tracked everything correctly.
Do I need to attach my 1099-K to anything?
Nope, it is simply an information form to show you how much you have processed through a payment gateway. Remember, if it is business income and you’re properly tracking everything in your accounting software, that information should already be accounted for.
I meet the criteria but I didn’t get my 1099-K. How can I get one?
If you didn’t get your 1099-K, or you have misplaced it, there’s no need to fret. In general, if you reach out to your payment gateway they’ll be able to resend your form, but here is more info from three of the most popular gateways used with FreshBooks:
For more information on 1099-Ks specifically, check out the IRS’ website.