1099 K Form Payment Card and Third Party Network Transactions
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Prepare e-file IRS 1099 NEC, MISC, INT, DIV, R, A & K for 2021
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What is 1099 K Form Used For?
1099 K is primarily used to report payment card transactions made in a calendar year.  
Compared to other 1099 Forms, this tax form specifically reports the payments made to  
a contractor via credit/debit cards or any third-party networks.
A payment card includes:
● Stored-value cards.
● Gift cards
● Debit/credit cards etc.
Third-party networks include Amazon, PayPal, etc in which third-party authentication is
required to process the payments.
When do you qualify for a 1099 K?
As per the IRS norms, not everyone who uses third-party networks or any payment  
cards receives fillable 1099 K form 2021. Instead, a business is qualified to receive an  
IRS Form 1099 K if:
● The payments are made to an employee who is not using any payment
cards like credit/debit, stored-value cards, gift cards, etc.
● Any third-party networks those involved to make the payments.
● The individual services processed by the third-party networks exceed
$20,000 in a tax year.
● Individual transactions made exceed $200 in a calendar year.
Apart from the above payments from 2021, the payee must issue 1099 K return if the  
services processed meets 1099 K threshold 2021 i.e., more than $600. These payments  
are regardless of individual transactions.
Who sends an IRS Form 1099 K?
Payment Settlement Entity sends a 1099 K Form to the individuals to report the  
payments made through payment cards. If you made payments to contractors using  
credit/debit/Amazon/PayPal, then the PSE sends you an IRS 1099 K Form. PSE is  
responsible to file tax returns because the PSE instructs you to transfer funds to the  
participating payee account.
A PSE is a domestic/foreign entity, a bank, or an organization committed to making  
payments to participating payee. The participating payee is an individual who accepts  
payment card or third-party network transactions.
How to complete an IRS 1099 K?
1099 K reporting requirements are:
Payer & payee details
Provide the payer and payee details like name, TIN, & address in the respective 
boxes.
Transaction reported checkboxes
Check the first top box if you are reporting payment card transactions. Or else, check the  
second top box if you are reporting third-party network transactions.
Box 1a – Gross payment card/third-party network transactions.
Box 1b – Card not present transaction
Box 2 – Merchant category code
Box 3 -Number of payment transactions.
Box 4 – Federal tax withheld
Boxes 5a-i – Appropriate gross amount for each month in a year.
Boxes 6-8– State Information.
Fillable 1099 K Form Important Dates
Here are the deadlines to issue multiple 1099 K Form copies:
1099 K Form Copy A to the IRS – February 28th, 2022 (paper filing);  
March 31st, 2022 (e-filing);
Printable Form 1099 K Copy B to the contractor – January 31st, 2021;  
Copy 1 to the State Tax Departments if your state requires to file 1099 K.  
E-file Form 1099 K instructions 2021
Here are the instructions on how to file Form 1099 K online:
● Sign up with an IRS-trusted e-file provider. Or else, log in to the existing
e-file account.
● New users can add the business details.
● Returning users can select the business information for which 1099 K is  
required.
● Select the “IRS 1099 K” form from the dashboard.
● Fill in the necessary details.
● Recheck the information entered before submitting it to the IRS.
● Transmit the tax returns to the IRS & to the contractor within the key 
date.
How does e-filing 1099 K with Form1099online.com work?
Filing 1099 K Tax Forms online with Form1099online.com is 100% safe & secure. We  
are the IRS trusted e-file provider providing 256-bit security encrypted software. Our  
e-filing services are cloud-based & secured from third-party networks. Solve your filing
time queries in seconds with our US-based customer support team available via chat,  
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