What Providers Need to Know About 1099-K Tax Forms for 2024
At MeetAPro, we value transparency and strive to make the tax season as smooth as possible for our providers. For the 2024 tax year, MeetAPro will not issue 1099-K forms directly. Instead, PayPal and Stripe, the third-party settlement organizations (TPSOs) we use to process payments, will handle this reporting. To ensure accuracy, we reached out to Stripe and PayPal to gather the latest and most reliable information for you. Here’s everything you need to know about 1099-K forms, who receives them, and what to expect.
Who Will Issue Your 1099-K?
As per IRS regulations, TPSOs like PayPal and Stripe are responsible for issuing 1099-K forms to eligible providers. A 1099-K summarizes payments received for goods or services via third-party platforms and is reported to the IRS to help ensure tax compliance. For 2024, you may receive a 1099-K if:
- Your account is based in the United States (note: owners do not need to be U.S. citizens), or
- Your non-U.S. account is for a U.S. taxpayer.
The income thresholds vary by state and federal rules. For example, many states have lower reporting thresholds than the federal limit of $5,000 in gross sales for the 2024 tax year.
Do You Qualify for a 1099-K?
The determination of whether you’ll receive a 1099-K depends on your total income and the state you reside in. Federal and state requirements differ significantly:
- Federal Thresholds: The IRS requires TPSOs to issue 1099-K forms for accounts with more than $5,000 in gross payments in 2024. This threshold will reduce to $2,500 in 2025 and $600 starting in 2026.
- State Thresholds: Some states, like Maryland and Vermont, require reporting for gross payments exceeding $600 annually, regardless of transaction volume.
For state-specific information, refer to resources provided by PayPal and Stripe:
What Should Providers Who Are Not U.S. Taxpapers Expect?
Providers who are not classified as U.S. taxpayers and do not file a W-9 form are typically required to complete a W-8BEN form (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting). This form certifies that you are not a U.S. taxpayer and, if applicable, allows you to claim tax treaty benefits.
If you are not a U.S. taxpayer, you will not receive a 1099-K form, as this form is specific to U.S. taxpayers for reporting payment transactions. However, income earned through our platform may still be taxable in your home country. We recommend that you contact your local tax authority or consult a tax professional to understand your responsibilities regarding reporting and paying taxes on this income.
Please ensure that you have submitted the correct tax form (W-8BEN instead of W-9) to comply with U.S. tax regulations and avoid unnecessary withholding or reporting issues.
How to Obtain Your 1099-K Form
From PayPal
- Email Notification: PayPal will send an email to notify you when your 1099-K form is available.
- Statements & Tax Center: You can access your 1099-K directly from PayPal’s Statements & Tax Center. Log in to your PayPal account, navigate to the Tax Center, and download your form.
- Availability Date: PayPal aims to make 1099-K forms available by January 31, 2025. Ensure that your account information, including your primary address and tax details, is updated to avoid delays .
From Stripe
- Email Notification: Stripe will notify account admins via email when the 1099-K form is ready.
- Documents Section in Dashboard: Log in to your Stripe account, go to the Documents section of the Dashboard, and download your 1099-K as a PDF.
- Availability Date: Stripe ensures 1099-K forms are available for download by January 31 each year. If you no longer have access to your Stripe account, Stripe will mail the form to the latest address provided.
- Backup Documentation: Stripe also offers a transaction log in the Dashboard to help you reconcile your 1099-K. This includes detailed reports of fees, refunds, and adjustments.
How to Prepare for Tax Season
If you qualify, PayPal and Stripe will issue your 1099-K by January 31, 2025, and notify you via email. You can download the form directly from their respective platforms. If you don’t receive a 1099-K but earned taxable income, you’re still responsible for reporting it.
For more details about 1099-K reporting and income thresholds, visit these helpful resources:
At MeetAPro, we encourage you to consult a tax professional for personalized advice and ensure all your tax obligations are met. If you have any questions or need further clarification, feel free to contact us at support@meetapro.com. Let’s make this tax season stress-free together!