This article explains what a 1099-K is and answers common questions about the form for businesses located in the US.
If you need help identifying your payment processor or finding your Merchant ID, the WellnessLiving Merchant team can help.
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What is a 1099-K tax form?
A 1099-K is an IRS tax form issued by payment processors to report transactions processed during the calendar year. It's typically issued when your business processes payments such as credit cards, debit cards, and direct debit (ACH).
The IRS uses this form to track payment activity and help make sure businesses are accurately reporting income.
Who receives a 1099-K?
Whether you receive a 1099-K depends on IRS reporting requirements and your payment activity during the calendar year. In general, your payment processor is required to issue a 1099-K when your transaction volume and/or number of transactions meet the IRS reporting thresholds for that tax year.
These thresholds are set by the IRS and may change from year to year. If your account doesn't meet the reporting criteria, your payment processor may not issue a 1099-K for that year.
For the most up-to-date eligibility rules, review IRS guidance on Form 1099-K or speak with a tax professional. To confirm your eligibility, contact your payment processor directly.
Where do I get my 1099-K?
Your 1099-K is issued directly by your payment processor, not WellnessLiving. Most processors make the form available in late January or early February for the prior tax year. If you can't find your form, contact your payment processor's support team directly.
How do I calculate gross sales in WellnessLiving?
You can use the All Sales Report to calculate your gross sales.
To calculate your gross sales:
Open the App Drawer
then click Reports > Sales > All Sales.
Use the date filter to select the date range you need.
Under Accounting Method, select Cash.
Click Filter, then set the following:
Under Payment Status, select Successful only.
Under Payment Method, select ACH, Card Reader, and Virtual Terminal only.
If you have multiple locations with separate merchant accounts, you can filter results by location:
Click Filter.
Click Locations.
Select the checkbox next to each location you want to include.
Why doesn't my WellnessLiving reporting match my 1099-K?
There are a few common reasons the numbers may not match:
Filters applied incorrectly. Double-check that you've applied the correct filters in the All Sales Report.
Payments processed outside WellnessLiving. If a payment was processed directly through your payment processor due to a software issue, it won't appear in WellnessLiving.
Payment status differences. In some cases, a payment may show as approved or failed in WellnessLiving but have a different status on the processor's end.
Batch settlement timing. Payments processed at the end of a month may not settle until the following month. For example, a payment processed on January 31 may not deposit until early February.
What if my business changed its legal entity?
If your business updated its tax ID during the year, you may receive two separate 1099-K forms: one for activity under the previous tax ID, and one for activity under the new tax ID. Together, these represent your total payment activity for the year.
If you think you're missing a form or have questions about the amounts reported, contact your payment processor directly.
How do I read my 1099-K?
The IRS provides detailed guidance on how to interpret each section of the 1099-K, including payer information, payee information, gross payment amounts, and monthly transaction totals. For a full breakdown, see Understanding your Form 1099-K on the IRS website.
Because tax situations vary by business, we also strongly recommend reviewing your 1099-K with a qualified accountant or tax professional.
What if there's a discrepancy on my 1099-K?
If you think there's an error on your 1099-K (such as incorrect totals or business information):
Contact your payment processor directly. Only the processor that issued the form can review, correct, or reissue it.
Have supporting records ready, such as monthly processing statements, transaction reports, and refund or chargeback records.
Do not contact the IRS. The IRS cannot make changes to a 1099-K. Corrections must come from the issuing processor.