What is a 1099-K?
Form 1099-K, Payment Card and Third Party Network Transactions, is an annual IRS information return used to report certain transactions managed by third-party settlement organizations. Refer to IRS.gov for more details regarding Form 1099-K.
Will I receive a 1099-K?
Sellers based in the US may receive a Form 1099-K when they meet certain sales thresholds set by the Internal Revenue Service (IRS). If you are not a “US person” as defined by the IRS (generally, a citizen or resident of the United States), or do not meet the threshold set forth below, you may not receive a Form 1099-K.
You may be eligible to receive a Form 1099-K by January 31, 2024 if your total gross sales for the 2023 calendar year exceed $600. Please see IRS.gov for more details regarding Form 1099-K.
Grailed does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and should not be relied upon for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before acting on the information set forth herein.
When will you collect my tax information for 1099-K purposes?
When a seller reaches the IRS 1099-K eligibility threshold, Grailed’s payment processors (PayPal or Stripe) may reach out to you with a request to provide them with your tax information.
What information will I be required to provide for 1099-K purposes?
Tax Identification Numbers (TIN) include a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) if you are selling as an individual, or an Employer Identification Number (EIN) if you are a legal entity. To avoid issues with processing, please ensure that the name you provide matches the legal name you use for tax purposes, and that all fields are entered accurately.
When will I be issued my 1099-K?
1099-Ks are typically issued one month after the close of the calendar year (i.e., by January 31 of each calendar year) to individuals/entities that have met the current IRS sales and/or transaction thresholds.
I am not a U.S. person. Do 1099-K requirements apply to me?
If you are not a US seller, 1099-K reporting should not apply to you. However, if the information you have provided to PayPal or Stripe identifies you as a US seller (e.g., your address on file is in the US or if you receive payments in USD), you may be issued a 1099-K form. To remove yourself from this filing requirement, you may need to provide a complete, applicable Form W-8 (or other certification) to certify you are not a US person as defined by the IRS (generally, a citizen or resident of the United States) to PayPal or Stripe, as applicable.
Grailed does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and should not be relied upon for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before acting on the information set forth herein.
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