Understanding Form 1099-K

For tax year 2024, Dwolla will report 1099-K forms for all individuals (1) with a Dwolla account through a client who provides payment services that facilitate compensation for goods and services and (2) who receive more than $5,000 in payments, with no minimum number of transactions, during that calendar year. For this purpose, Dwolla reports gross payments. Reporting payments on the Form 1099-K does not automatically deem those payments to be income. You will need to work with your tax advisor and produce other records to demonstrate which payments are taxable income.

Dwolla is a software payment platform providing payment services that a business, our client, embeds within its site or application. If you received a notice from us, it is because you created an account with us through one of our client’s products. Dwolla files these forms for transactions that take place through your Dwolla account. 

Please visit the IRS’s website for more specific information about understanding your Form 1099-K. 

Dwolla will submit the information you provided when you opened your Dwolla account—through a Dwolla client’s platform—to the IRS verification service. If the IRS cannot confirm that the TIN you provided and the name on your account match, Dwolla will request that you fill out a Form W-9 to provide correct information. If you have concerns about the information the IRS has on file for you, we recommend that you follow up directly with the IRS.

The Form 1099-K requires that we report the gross receipts from transactions made through your Dwolla account during the calendar year. The gross amount reported on your Form 1099-K may not be the actual reportable amount on your tax return. Use this form in conjunction with other records (bank statements, invoices, etc.) to report taxable income, if any. Please consult your tax advisor to determine your tax reporting requirements. 

You will receive an email from Dwolla when your Form 1099-K is available. You will need your TIN information for your account in order to obtain your Form 1099-K. By creating an account with one of our clients, you agreed to our terms of service and to receive electronic communications regarding your account. 

If you wish to receive a paper copy of your Form 1099-K, please notify Dwolla at support@dwolla.com as soon as possible.

Form 1099-Ks will be available by January 31 each year.

Dwolla reports only the transactions received through your Dwolla account. Dwolla does not and cannot aggregate all transactions you may have conducted through a Dwolla client’s product using different payment methods.Those transactions will need to be reported separately.

Please contact the Dwolla client referenced in your Notice of IRS Tax Form Eligibility email to request additional copies or support.

Please email Dwolla at support@dwolla.com to request that your Form 1099-K be delivered by mail.

Yes. Dwolla has set up a secure method to retrieve your Form 1099-K. Accessing your Form 1099-K will require you to know the Taxpayer Identification Number (TIN) for your account. Please take great care to not share the details of your Form 1099-K or your TIN with any third party. Dwolla will never request your TIN over email, text, or phone call. 

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. This form should be used in conjunction with other records (bank statements, invoices, etc.) to report taxable income, if any. Please consult with your tax advisor to determine your tax reporting requirements.

If you received a request to fill out a Form W-9, please provide the correct information in that form. Please also follow up with the Dwolla client whose services you use to update your account information.

If you have not received a request to fill out a Form W-9, please contact the Dwolla client identified in your Notice of IRS Tax Form Eligibility email and request an update to your information.

If you have a Dwolla account being used by someone else, please contact the Dwolla client identified in your Notice of IRS Tax Form Eligibility email and request to close your account, and have the person receiving funds open a Dwolla account for themselves. For this tax year, please also notify the Dwolla client that a third party will need to receive the Form 1099-K for your account. You will need to provide evidence that you are not the recipient of the payments (this may include bank statements or another form of attestation.)

If you believe the amounts reported in the 1099-K are inaccurate for the taxpayer listed on the form, please contact support@dwolla.com to receive instructions on how to submit supporting data for Dwolla to review.

Many individuals who have never received a Form 1099-K before will receive them this year. In past years, the threshold for a Form 1099-K from a third party service organization was $20,000 in receipts and more than 200 transactions. For the 2024 tax year, the threshold has been lowered to $5,000 with no minimum number of transactions. This means many individuals and businesses who may casually use online payment services will now receive a Form 1099-K.

Please contact the Dwolla client identified in your Notice of IRS Tax Form Eligibility email immediately. If an account has been created in your name, you will need to work with them to deactivate your account and provide evidence that you are not the user who created the account.

While Dwolla provides as much information as possible to help you understand your Form 1099-K, Dwolla cannot assist with your tax return or provide advice on your tax situation.

A Form W-9 provides the information necessary to file tax forms for an individual or a business. If you received a Form W-9 request from Dwolla, it is for one of two possible reasons: (1) the information you have already provided to us did not match a taxpayer on record with the IRS and thus we require updated information, or (2) you are eligible for a Form 1099-K but have not provided us information required to file the form.

Dwolla cannot accept the Form W-9 information in any format other than through the link that has been provided to you. This helps to ensure security and accuracy of the information collected. If you need a new Form W-9 sent to you, please contact support@dwolla.com.

A TIN is a Taxpayer Identification Number. Typically, for an individual, this is a Social Security Number (SSN) for U.S. citizens or an Individual Taxpayer Identification Number (ITIN) for non-citizens. For a business, the TIN is an Employer Identification Number (EIN). These numbers are issued to you or your business by the IRS. More information is available on the IRS website.

Non-U.S. residents must provide Form W-8BEN to be exempt from tax reporting. Dwolla’s terms of service do not permit non-U.S. residents to hold a Dwolla account, and as a result we will suspend your account upon receipt of this confirmation. 

If Dwolla is required to report a Form 1099-K for your Dwolla account and we do not receive a correct and complete Form W-9, Dwolla will suspend your Dwolla account. You will no longer be able to send or receive payments through the Dwolla client identified in your Notice of IRS Tax Form Eligibility email.

When your Form 1099-K is available for you to view and download, Dwolla will send you an email that includes a link to Dwolla’s 1099-K portal. Click the link to access the portal. This link is personal to you and should not be shared with others. You will not be able to retrieve your Form 1099-K without your link.

Click on the link in the email you receive from Dwolla. Log in using the last four digits of either the Social Security Number (SSN) or Employer Identification Number (EIN) you provided to Dwolla. The email and the portal login page will tell you which number you need to enter to authenticate yourself and enter the portal.

Each account has its own unique URL to access the 1099-K portal. The email you receive links to your unique portal URL.