Will I receive a 1099-K and what do I do with it?
The 1099-K is a purely informational form that summarizes the payment activity of your account and is designed to assist you in reporting your taxes. Every year, the United States IRS requires that XTRM provide a form to you called a 1099-K for each account that meets all of the following criteria in the previous calendar year:
Please note that for non-us residents the data on this form can be used for your own personal tax return regardless of where you live.
- Received more than $20,000 USD in total
- More than 200 transactions
What information is included in my 1099-K?
Below you’ll find a brief description of the information you can expect to find on the 1099-K that XTRM provides for you. For more help understanding your 1099-K go to IRS.gov.
|Filer’s name, address, and telephone number
||Contact information for XTRM
|Payee’s name, address, and telephone number
||This is the contact information for your business or organization as it was provided to XTRM.
If you’d like to update your address, please do so before January 21st from your account settings.
|PSE’S name and telephone number
||Contact information for XTRM
||Your XTRM account number
|Filer’s federal identification number
||XTRM’s identification with the government
|￼Payee’s taxpayer identification number
||This is either your Employer Identification Number (EIN) or Social Security Number (SSN) or Tax ID as it was provided to XTRM.
If your information needs to be updated, please correct it in your profile.
|￼Gross amount of payment card/third party network transactions
||The total gross volume of charges that you’ve made with XTRM in the calendar year
|Card Not Present transactions
||The total gross volume of charges that were made without the card present at the time of the transaction.
|Merchant category code
||The merchant category code for your business or organization
|Number of payment transactions
||The number of charges that you’ve made with XTRM in the calendar year
|Federal income tax withheld
||Backup withholding from your XTRM payments.
||The total gross volume of charges that you’ve made with XTRM for each month of the calendar year
||The state in which your income tax has been withheld
|State identification number
||Your identification number that is used for your state income tax withholding
|State income tax withheld
||State and local income tax withheld from the payments
How and when do I get my 1099-K?
Your 1099-K will be provided by Jan 31st of each year as long as your profile is complete. To view and download , login to your personal account.
Click the “Tax” menu item on the left menu
Click on the “Here” link to download
Once you’ve done this, you’ll have the option to download the 1099-K PDF that we have prepared for you.
What is “Total Gross Volume”?
“Total gross volume” means that we calculate the total of all of your payments received for the year including:
Payments from companies
Finding out the transactions counted towards your 1099-K
If you’d like to see a per-transaction breakdown of your 1099-K, you can easily do so by logging into your XTRM account, and then viewing the accounts page.
From here, select the ‘Download’ button located in the upper-right corner of your screen.
After the download has finished, simply open the resulting .csv file in your spreadsheet viewer of choice.
My account received less than the US IRS reporting threshold, but I still received a 1099-K. Why is that?
XTRM provides a 1099-K form for all users regardless of the actual requirements and thresholds. This is because this data can be used in any country and the thresholds may be different.
US Specific Information
If you earn over $600 your payer is obliged to notify the IRS and you may be sent a 1099-Misc as well as a 1099-K to submit with your Tax Return. You do not need to submit both.
Please note we submit your data to the IRS in plenty of time but the timing of receipt of the email you receive with the electronic 1099 is not in our control. It will be on or before Jan 31. Please be patient.
YOUR 1099 WILL BE AVAILABLE TO YOU ELECTRONICALLY IN XTRM. You may receive an email like the one below. You can opt to login and download the PDF version of your 1099 or have it mailed to your home address.
Your tax form statement available online!
Dear [Recipient Name],
Recently, [Payer Name] hired XTRM to submit your tax information to the IRS and/or SSA. You are receiving this email to learn more about the option of accessing your tax statement online at efile4biz.
Why the email notification?
The IRS requires us to obtain consent from any tax form recipient who wishes to receive an electronic tax statement, rather than a paper copy. Please follow the instructions below to access your statement. Otherwise, we must send your statement via regular U.S. mail to meet IRS and/or SSA requirements.
Who are we?
We are an IRS-authorized tax form service bureau that assists clients in e-filing tax information to the IRS and SSA. As mentioned earlier, [Payer Name] hired our services to submit your tax information to the IRS.
What do you need to do?
Simply click the link below to provide your consent and enjoy convenient online access to your statement. You’ll need your email address and Tax ID number (same as your SSN or TIN) for access. Once you log in, you will be able to print your tax statement or save it as a PDF copy. There is no cost to you.
After logging in you will be taken to a screen to get the 1099 electronically or sent via mail.