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Understanding Form 1099-K
In This Article
1099-K Overview
DepositLink's payment processor, Dwolla, will start the Form 1099-K process for tax year 2025.
Notification Schedule:
- Notice of Form 1099-K eligibility to DepositLink users: January 9th
- Form W-9 requests: January 12th
- Form 1099-K available: by January 31st* (based on date completed)
IRS regulations do not require payment service entities to determine or report what constitutes taxable income. Instead, we are required to report gross payments received through our platform on Form 1099-K. This form should be used alongside your other records (such as bank statements and invoices) to determine and report any taxable income, if applicable.
Understanding Eligibility
Notices of Eligibility to DepositLink users who qualify for a Form 1099-K; those who, in the 2025 tax year, received more than $20,000 in payments from more than 200 transactions.
Dwolla also reports Form 1099-K information to applicable state tax authorities for users when their payments exceed the relevant state reporting threshold.
In addition, they will collect the Form W-9 information from end users who need to file a Form 1099-K.
Please Note: DepositLink is not authorized to provide legal counsel or tax advice.
We recommend consulting with a tax professional to understand your specific tax reporting obligations, including state tax thresholds or additional tax requirements.
FAQ
- What is Form 1099-K?
- What if the payment I received was not taxable income?
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What if the payments reported in my 1099-K are inaccurate? How do I request a correction?
What is Form 1099-K?
Form 1099-K is an IRS information return that reports the payments a person or business received through third-party payment network transactions to improve tax compliance.
Form 1099-K is provided to the IRS (and to some states) to report certain payments sent or received within third-party settlement organizations. Use this form in conjunction with other tax records (bank statements, invoices, etc.) to report taxable income, if any. Please consult your tax advisor to determine your tax reporting requirements.
Dwolla is required to issue 1099-K forms to individuals with Dwolla accounts who received payments for goods and services that exceed certain federal or state reporting thresholds. The federal threshold for tax year 2025 for reporting transactions is $20,000 in gross payments for goods & services from over 200 transactions.
What if the payment I received was not taxable income?
The IRS regulations do not require that payment service entities report or determine what is taxable income. Rather, we are required to report gross payments received on our platform in your Form 1099-K.
DepositLink Payment Types Excluded From Report:
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Refunds
What if the payments reported in my 1099-K are inaccurate? How do I request a correction?
If you believe the amounts reported in the 1099-K are inaccurate for the taxpayer listed on the form, please contact dwolla1099-k@dwolla.com to receive instructions on how to submit supporting data for Dwolla to review.