As a veterinary clinic using our DSP (Digitail Payment Solution) in the United States, which is powered by Stripe, you may need to file a Form 1099-K with the IRS to report payment transactions made to you through our platform. Below, we answer some of the most frequently asked questions about Form 1099-K and how it applies to your clinic’s operations.
What is Form 1099-K?
Form 1099-K is an IRS form used to report payments made via payment card or third-party networks. For clinics that use our DSP for payment processing, Stripe, as the payment processor, may issue this form to report payments you have received. The 1099-K is important for tracking the total amount of payments processed through your Stripe account.
Why Did I Receive a 1099-K?
For most states, you will receive a 1099-K form if your clinic processed $600 or more in gross payments during the calendar year. This is in accordance with the updated federal threshold set by the IRS. However, some states follow other threshold rules.
If your clinic meets the threshold, Stripe will send you a 1099-K. If your clinic falls below these thresholds, you may not receive a 1099-K form, but you will still be required to report your income to the IRS.
When Will I Receive My 1099-K?
Stripe typically generates and sends the 1099-K form by January 31st of the following year, for the payments processed in the prior year. The form will be sent to the email address associated with your DSP/Stripe account, and you will also be able to download it from your Stripe Dashboard.
Important: Check your Stripe Dashboard for the availability of your 1099-K form. You may also need to verify that your account information is up to date.
How Do I Access My 1099-K Form in Stripe?
To access your 1099-K form:
Log in to your Stripe Dashboard.
Go to the Tax Forms section under your account settings.
Click View Form 1099-K to download it.
For more information, go to Stripe Help Center: 1099-K FAQ.
If you cannot find your 1099-K form, make sure you meet the IRS thresholds, and confirm your account details are correct.
What Information is Included on the 1099-K?
The 1099-K form will provide the following details:
Gross Payments: The total amount of payments you received through Stripe during the reporting period.
Transaction Count: The total number of transactions processed during the year.
Payment Card and Third-Party Network Payments: Payments processed via credit cards, debit cards, and third-party payment networks (e.g., Stripe Connect).
Please review the form carefully to ensure all your payment details are correct.
How Do I Report My 1099-K Form?
When you receive your 1099-K form, you need to use it to report your payments when filing your tax return. The gross payments reported on the form should be included in your business income. The 1099-K provides a summary of the payments you have received through Stripe’s platform and ensures that your clinic complies with IRS requirements.
Consult with your tax advisor to ensure you are accurately reporting your earnings.
If you’re using accounting software, ensure your 1099-K details are correctly integrated to simplify tax reporting.
What Should I Do if I Believe the Information on My 1099-K is Incorrect?
If you find any discrepancies on your 1099-K, such as incorrect amounts or missing payments, it’s important to contact Stripe Support immediately. Stripe will work with you to investigate and correct any issues related to your account’s payment reporting.
Note: The most common issues are often related to missing or incorrect account information. Double-check that your Stripe account is up to date, including your business name, EIN, and address.
Does My Clinic Need to File a 1099-K with the IRS?
As a clinic using DSP powered by Stripe, Stripe will submit the 1099-K directly to the IRS on your behalf. You don’t need to file this form yourself unless you are required to file additional forms due to specific state or local tax laws.
However, depending on your state or jurisdiction, you may be required to submit a copy of the 1099-K form to your local tax authority. For more information on your state’s specific requirements, refer to your state’s tax department or consult a tax professional.
State-Specific 1099-K Requirements
1099-K filing requirements vary by state. While Stripe will automatically submit the 1099-K to the IRS for clinics in many states, there are certain states where Stripe is not required to automatically file the form with the IRS on your behalf. In those cases, you will need to submit the 1099-K directly to the IRS yourself.
You should check the specific requirements for your state to ensure you comply with local tax laws. For more detailed information on state-specific requirements for Form 1099-K, visit Stripe's official documentation: 1099-K State Requirements.
Form 1099-K is an important document for clinics that process payments through DSP (powered by Stripe). Ensure that you keep an eye on your Stripe Dashboard for updates, verify the accuracy of the form, and reach out to Stripe Support if you need assistance. Always consult a tax professional to ensure you comply with all federal, state, and local tax regulations.