E-file Form 1099-K Online for 2022 Tax Year

With all the involved in 1099 filing taxes, it can be difficult to sort out just which ones you need to fill out and which ones you don't.

What is Form 1099 K?

Form 1099 K is used by the Payment Settlement Entities (PSEs) to report third-party payment network transaction transactions and payment card transactions for a tax calendar year. If you own a small business and accept online credit card payments, you need to pay particular attention to the IRS Form 1099-K. In our changing world, this newest tax document represents a shift towards online commerce and credit card payments, and there is a lot of confusion about who needs to file and what to do if you receive one.

The 1099-K Form exists due to the 2008 Housing Assistance Tax Act. While it has nothing to do with housing, this form was created to hold online retailers responsible for reporting sales for tax purposes. Credit card companies and third-party processors like PayPal and Amazon are all required to report payment transactions on behalf of retailers. If you accept credit card payments or run an e-commerce business through a third-party processor, you may find a 1099-K Form in the mail. On the 1099-K you will find listed the gross payment card and third-party network transaction amounts. Both are required by law to be reported to the IRS and Form 1099-K is one of many documents that are designed to ensure that self-employed persons report their earnings accurately.

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.

1099 K Form

Simple steps to E-file Form 1099-K

  • Create your free account
  • Enter Tax Information
  • Submit to IRS

Watch our step-by-step video on How to E-File IRS Form 1099-K with Tax2efile

Who Must File Form 1099-K?

Every PSE or other party which submits instructions to transfer funds to the account of a participating payee, in the settlement of reportable payment transactions, must file an information return (Form 1099-K) with respect to each participating payee for that calendar year.

Multiple PSEs. If two or more persons qualify as PSEs for the same reportable transaction, the PSE that submits the instruction to transfer funds must file the return. However, the PSE obligated to file may designate another person to file the return, including the PSE not making payment, if the parties agree in writing. If the designated person fails to timely file the return, the entity with the responsibility to file is liable for any applicable penalties under sections 6721 and 6722

Electronic payment facilitator (EPF). If a PSE contracts with an EPF or other third party to make payments in settlement of reportable payment transactions on behalf of the PSE, the facilitator or other third party must file Form 1099-K in lieu of the PSE.

Important update

For calendar years after 2021, the minimum reporting threshold for gross payments in the settlement of third-party payment network transactions will be $600 for any number of transactions.

If filing for calendar years prior to 2022 the minimum reporting threshold for gross payments is $20,000 and more than 200 of such transactions.

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.

Still have questions?

Form 1099- K is filed for gross amount of all reportable payment transactions. You will receive a Form 1099-K from each payment settlement entity from which you received payments in settlement of reportable payment transactions

Anybody who accepts payments from credit cards or third-party payment networks such as PayPal or Venmo might receive a 1099-K

Details that are required to file Form 1099-K are: Names, Address, Tins, gross amounts of payment card/third party network transactions, Card Not Present transactions, Merchant category code, Number of payment transactions, Federal income tax withheld.

Yes, Tax2efile offers a bulk upload feature that allows the user to upload all the Payees to an excel sheet for a faster process.

Yes, Tax2efile offers printing and mailing service! Our dedicated team will print and mail out each form you filed.

Using our fast electronic service, you can complete your filing within 5 minutes.

Tax2efile allows you to correct a mistake to the recipient’s information for TINs, Names & amounts.

To file Form 1099-K for a single return the filing fee is $3.25.

The IRS requires Form 1099-K to be submitted by February 28 through the mail and by March 31 if you file the form electronically however, recipients’ copy should be mailed by January 31.

The penalty can be from $50 per 1099 form, the maximum penalty can be up to $194,000. The penalty increases to $100 per 1099 form if you submit more than 30 days after the due date, but by August 1; the maximum penalty is $556,500. If you file after August 1, the penalty increases to $280 per 1099 form, with a maximum of $3,392,000. Additionally, there are penalties for failure to furnish the payee statement.

If you have more questions, please refer to our FAQ page.

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