If you accept card payments through our Online Payments feature, you may receive a 1099-K form when tax season approaches.
In this guide, we'll answer:
- What is a 1099-K form?
- Does my practice qualify for a 1099-K?
- Where do I find my 1099-K form?
- How do I opt in for electronic delivery of my 1099-K form?
- How will I receive my 1099-K if I no longer have a SimplePractice account?
- What information is included on the 1099-K?
- How is my 1099-K calculated?
- Which states have lower threshold requirements?
What is a 1099-K form?
The 1099-K is an informational form that summarizes the credit card sales activity of your account and is designed to assist you in reporting your taxes. Every year, the United States IRS requires that our payment processor provide a 1099-K for each account that met all of the following criteria in the previous calendar year:
- Account bank account is based in the United States
- More than $20,000 USD in total gross volume
- More than 200 individual transactions
Note: Some states have lower threshold requirements. For more information, see Which states have lower threshold requirements? below.
Does my practice qualify for a 1099-K?
For most accounts, a 1099-K is only automatically generated if your practice processed at least $20,000 in credit card charges through SimplePractice over the last calendar year. However, there are possible exceptions to this rule, depending on the state you reside in.
Our payment processor provides a 1099-K form for each unique tax identification number (TIN), such as a Social Security Number (SSN) or Employer Identification Number (EIN), that meets the IRS processing threshold. It’s possible that you may have an account that doesn't meet the threshold, but they may provide you with the form anyway.
Some possible scenarios include:
- You have two accounts with the same TIN; one meets the IRS threshold and one doesn't. Each will receive a 1099-K.
- You have two accounts with the same TIN; neither are over the IRS threshold individually but, when combined, the threshold is met. Each will receive a 1099-K.
- Your business is based in a state with a lower threshold than the federal amount.
To learn more about how 1099-Ks are issued, see our processor’s guide on 1099-K forms issued.
Where do I find my 1099-K form?
All qualifying customers will be notified via email once their 1099-K is available. If you qualify, you’ll find your 1099-K at the Settings > Business Files section of your account.
Note: See What information can I change after my account has been verified? for more information about editing your Online Payments profile.
How do I opt in for electronic delivery of my 1099-K form?
If you qualify for a 1099-K, you’ll receive notice of this electronically and will be able to access the 1099-K in your SimplePractice account. We won’t be mailing physical copies.
By accepting our Terms of Service, customers consent to SimplePractice or Stripe, our payment processor, sending your tax forms, tax notices, or tax returns (including informational returns such as 1099s) via e-mail or other electronic format.
How will I receive my 1099-K if I no longer have a SimplePractice account?
If you qualify to receive a 1099-K, but no longer have a SimplePractice account, we’ll mail your 1099-K to the business address associated with your Online Payments account.
The 1099-K will be postmarked by January 31st, 2024. If you’re expecting a 1099-K to arrive, but haven’t received it in the mail by this date, please submit a help request to our team.
What information is included on the 1099-K?
The 1099-K includes a variety of important details about your practice and income over the tax year, including but not limited to:
- Your practice contact information
- The EIN or SSN used for your Online Payments account
- The number of charges that you’ve made with your Online Payments account in the last calendar year
- Any state or federal tax you’ve withheld through your Online Payments account
How is my 1099-K calculated?
Your 1099-K includes the total amount of Online Payments processed within the tax year. Only payments that had an estimated payout within the tax year will be included. The form won’t include:
- Refunds that were issued
- Disputes that occurred
- Other payment methods (such as Cash, Check, or External Card) that were accepted
Your Tax Report will list your Online Payments based on the date they were added, rather than their estimated payout. This report also includes refunds, disputes, and non-Online card payments that were added within the year. For more information, see Tax Report FAQs.
Which states have lower threshold requirements?
Certain states have lower thresholds to qualify for a 1099-K. If you don’t meet your state’s threshold, a 1099-K won’t be issued for your account.
To find out if your state requires a 1099-K, we recommend reaching out to a tax professional.