What is a 1099-K?
Form 1099-K is an IRS information form used to report payment transactions to improve voluntary tax compliance. You should receive Form 1099-K by January 31 if, in the prior calendar year, you meet the qualifications in your state and/or federally.
The 1099-K will be generated in either your name or your company (aka business) name, based on the selection you made when initially setting up rent payments for your account through TurboTenant.
Updating 1099-K from an individual account to a business entity or LLC
We are able to update your Stripe account to be a business account rather than an individual account. Doing so will prevent you from running into any 1099-K reporting issues with the wrong name for the next year. Please reach out to our support team and provide an SS4 or 174C from the IRS for us to update the account information, which may take a few business days to complete.
If you do update your Stripe account to be a business account, rather than an individual account, Stripe will not generate a new 1099-K form for the previous calendar year. To work around this, you can export your rent payments as a CSV for each business which will allow you to self-report your taxes for that particular calendar year. This can be done within the payments section of your account. This Help Center article will guide you through the process of exporting your rent payments: How Do I Export My Rent Payments?
You can set up multiple entities in TurboTenant, and doing so can allow your funds to be split into multiple LLC accounts and receive a 1099k for that specific entity if the criteria are met. Learn more about what a business entity is to see if that is the right choice for you!
Qualification Criteria for 1099-K Forms*
For 1099-K forms, the IRS requires filing if, in a calendar year, the gross amount of total reportable payments exceeds $5,000 in a calendar year. However, filing requirements for some states might differ from federal requirements.
*Please note: The requirements for filing a 1099 form are subject to change each tax year, so staying updated on the latest IRS guidelines is essential to ensure compliance.
For more details on Stripe’s qualification criteria, please refer to their Help Center article on this topic.
FAQs:
Q: How will I receive my 1099-K for 2025?
A: As of January 31, 2025, you will have access to your federal and state (if applicable) 1099-K forms directly within your TurboTenant account. You will receive an email notification once those forms are available.
Q: I do not want an electronic delivery of my 1099-K; what are my other options?
A: Reach out to our team with your mailing address, and we'll send you a physical copy when the form becomes available.
Q: Does TurboTenant prepare 1099-Ks for Landlords?
A: At this time, TurboTenant does not prepare tax documents for landlords to utilize; this is done by our payment processor, Stripe. This means any payments accepted outside of the platform that were logged in TurboTenant will not be reported. We recommend you utilize the "Export CSV" option within the Payments tab to export any rent payments needed for reporting on your end.
Q: Will my 1099-K include the security deposits I received through TurboTenant?
A: The 1099-K form will include payments processed through TurboTenant, as Stripe is required to report the total gross volume of your account, including security deposits processed through TurboTenant. If you manually record a payment or what we consider an "offline payment," those are not reported on the 1099-K. The 1099-K form is purely informational and designed to assist you in documenting your taxes. For more information on 1099-K, please visit the IRS.gov website.
Note: Before the calendar year 2024, the 1099-K threshold was applied to U.S. accounts, with USD 20,000 in total gross volume and 200 transactions.
Q: I noticed that the amounts on the 1099-K form are incorrect compared to the information on TurboTenant. Could you tell me how I fix this?
A: Stripe reports payments based on the date paid, not the date the funds were deposited into your bank account. This means that your 1099-K form might show two payments in one month and one payment in another month, depending on the timing of Stripe's payment processing. Please note that TurboTenant will not make adjustments to your 1099-K form. If you need to make adjustments, you will need to partner with a tax professional.
Q: Can I opt out of my 1099-K being filed by Stripe?
A: No, you cannot opt out of Stripe filing your 1099-K with the federal or state governments. If you meet the threshold of payments received for the state, federal, or both, Stripe will be required to report and file the 1099-K document with them.
Q: The 1099-K is not under the correct business or personal name. Can I update this and have it reissued?
A: 1099-Ks will be issued under the information you had for the tax year that they are reporting for. You can update your business type or name for future tax years, but the 1099-K will not be able to be edited or reissued with name or business updates retroactively. It is important to set up your information with the correct information and for you to check your rent collection information for accurate reporting.