The deadline for Wanelo to send your 1099-K form for your transactions is Tuesday, January 31st, 2017. It's possible you could receive it before or a few weeks after that deadline. Payable is the service working with Stripe (Wanelo's payments provider) to deliver 1099 tax forms this year. We put together this quick guide to help you better understand your 1099 and what it means for taxes.
There are over 15 different types of 1099 forms used by companies to report payments to individuals or other companies. This is how the IRS knows how much in taxes it can expect come April. The 1099-K is used by Payment Settlement Entities or Third Party Payment Networks (like Stripe, which Wanelo uses to transfer funds to sellers) to report payments between buyers and sellers.
In most cases, the Wanelo transactions reported on your 1099-K are considered income and subject to income taxes. But you are able to write off expenses to lower the amount you are taxed on. For example, if you had marketing expenses, production expenses, or payments to subcontractors or any other expenses for your project, you can likely write those off. The Schedule C is the form used to count your individual income and expenses from your project. The IRS provides a helpful list of deductions in the instructions to the Schedule C.
It’s highly recommended that you speak with a tax professional to understand your particular tax obligation as it can vary based on your project type and whether you are an incorporated business or individual.
You’ll receive a 1099-K via Payable and Stripe for sales made on Wanelo if you raised over $20,000 and received over 200 payments.
Yes, even if you didn’t receive a 1099-K for Wanelo transactions, you will need to report the funds you raised to the IRS.
First, check the form for accuracy and make sure your name, address, SSN or EIN are all correct. Make sure the payment amounts reported are also correct.
If you’ve had several successful stores on Wanelo, we aggregate the earnings across all stores and report that amount on one 1099-K.
Don’t worry -- Stripe is required to report the total amount paid out before fees were extracted. When you report the money earned through Wanelo, you’ll count the fees as an earning and an equal expense. That means you’ll count the Wanelo fee and the payment processing fee as an earning and then also the same amount as a business expense so you won’t be taxed for that fee.
Make sure you know your fundraising total after Wanelo and payment processing fees have been deducted.
Here’s what the form will look like:
Stripe facilitates payments for Wanelo sellers. This year, Stripe partnered with Payable to generate and deliver 1099s payments data on Stripe.
Payable is a dashboard for managing and paying independent contractors. We also provide a 1099 tax service.
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