How to Review Your 1099 Tax Documents and FAQ

If you need to view your 1099 documents please follow these steps:

1. Navigate to the menu dropdown in the far top right corner of your admin backend

2. Select “Manage Payments”

3. Navigate to “Documents” tab

4. Under “Tax Documents” dropdown select the 1099 and the year you are looking for

For a visual representation please watch the video below.

1. What forms will be distributed?

   1. Your business will receive a 1099-K

   2. Drivers/Contractors will receive a 1099-NEC

2. If I use partner Pay with those funds shown on my 1099k

   1. No. Those funds will be removed from your 1099k

3. Why does my 1099k show a larger or smaller amount than I received in deposits?

   1. Your 1099k includes all payment processing but does not include any discounts, credits, refunds etc. It also does not include cash, checks or other deposits.

i. Example - A customer orders $50 in food / Client has 20% over Auth so the consumer is authorized for $60. 

The consumer then calls and says they want to add to the order and now the total is $100 so a new authorization for $120 is made. 

The consumer calls after the delivery to say some of the food was cold so you give them a 50% discount.

Your business ends up receiving $50 But the total authorized payment for the order was $60+$120.

Your 1099k will show $180 for this order even though you only received $50.

ii. Supporting Data

1. IRS LINK https://www.irs.gov/businesses/understanding-your-form-1099-k#:~:text=For%20calendar%20year%202022%2C%20third,are%20more%20than%20200%20transactions .

IRS SECTION - What is included on the Form 1099-K? 

1. Whether you own a business, are self-employed, work in the gig economy or are selling personal items, Form 1099-K includes the gross amount of all payment transactions. You may receive a Form 1099-K from each payment settlement entity from which you received payments in settlement of reportable payment transactions. A   reportable payment transaction is defined as a payment card transaction or a third-party network transaction. A third party network transactions may include a payment through a payment app. 

2. Payment card transaction means any transaction in which a payment card, or any account number or other identifying data associated with a payment card, is accepted as payment. Third party network transaction means any transaction that is settled through a third-party payment network, but only after the total amount of such transactions exceeds the minimum reporting thresholds.

3. The gross amount of a reportable payment does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts. The dollar amount of each transaction is determined on the date of the transaction.

4. Stripe Link - https://support.stripe.com/questions/1099-k-forms-issued-by-stripe  

   1. Stripe Section - “Total Gross Volume” on 1099-K Form

   2. “Total gross volume” is a calculation of the total of all charges you processed through Stripe for the year, including:

      1. Stripe processing and conversion fees

      2. Shipping fees

      3. Taxes

      4. Refunded charges

      5. All adjustments

   3. These additional fees, refunds, and adjustments are not deducted from your total charges when calculating your gross volume and reporting to the IRS.

5. How should I report my income to the IRS.

   1. Take your 1099k and add any cash, checks, or other deposits to that total. Deduct all expenses including but not limited to discounts, fees, refunds, etc. The remaining amount is what you received in income. 

6. How should I handle independent contractors (drivers) that deliver food for my business?

   1. You must file a 1099-NEC for any contractor you have paid over $600 in the calendar year.

   2. If you are using DriverPay through stripe those funds do not come from you they are transmitted directly from the DL Master Stripe account to the Driver account. Therefore Stripe will file a 1099-NEC for DL to any driver who received more than $600 in Auto Pay payments during the calendar year.

   3. If a driver was paid more than $600 through auto pay and directly by your business they would receive two 1099-NEC.

      1. IRS info - https://www.irs.gov/pub/irs-pdf/i1099mec.pdf