Below are FAQs about 1099-K forms for customers using the D-Tools Payment solution.
What is a 1099-K, and why did I receive one?
If your D-Tools Payments account processed more than the IRS minimum for the calendar year, you will receive an IRS Form 1099-K. It is filed with the IRS on your behalf, so you don't need to take any action.
The IRS requires payment companies to file a 1099-K for every merchant whose payment volume exceeds the federal reporting minimums for that calendar year. Some states also require a separate state filing based on their own limits. For the current federal minimums, see the IRS Form 1099-K information page.
The form helps ensure businesses report their sales accurately for tax purposes. These rules apply to both for-profit and nonprofit organizations.
What's on my 1099-K?
Your 1099-K reports your gross card and ACH payment volume for the calendar year, broken out by month, plus your total number of transactions. Because it is a gross figure, it will likely not match the deposits in your bank account. Here's what each part of the form shows.
Box on the form | What it shows |
FILER'S name and address (top left) | D-Tools, Inc., which is listed as the filer of your 1099-K. |
Filer type checkbox | Shows how D-Tools is classified as the filer, such as Electronic Payment Facilitator (EPF). |
Transactions reported checkbox | Shows whether your payments are reported as payment card or third-party network transactions. |
PAYEE'S name and address | Your business's legal name, DBA, and address as listed on your D-Tools Payments application. |
PAYEE'S TIN | Your business's taxpayer ID (EIN or SSN), partially masked. |
Box 1a — Gross amount | All card and ACH payments collected for the year, before refunds, fees, credits, or other adjustments. |
Box 1b — Card not present | The portion of Box 1a where the card wasn't physically present, such as online invoice payments. |
Box 2 — Merchant category code | May be left blank. |
Box 3 — Number of payment transactions | Total count of payments for the year. |
Box 4 — Federal income tax withheld | Typically $0.00. |
Boxes 5a–5l — Monthly amounts | Gross payments for each month, grouped by the date of the transaction, not the date funds reached your bank. These add up to Box 1a. |
PSE'S name and telephone number | The name and phone number of D-Tools' payment processing partner, which processes your D-Tools Payments transactions. |
Account number | Your merchant ID (MID). |
Boxes 6–8 — State information | Your state, state ID number (may be blank), and state income tax withheld (typically $0.00). |
A payment your customer made in late December that deposits in early January is reported in December of the year the customer paid.
When and how will I receive it?
1099-Ks are delivered electronically in early January, with a paper copy mailed by January 31 if you don't open the electronic version.
Timing | What happens |
Early January | An email invitation to access your electronic 1099-K is sent from 1099-k@pmt-info.com to the business owner's email listed on your D-Tools Payments application. |
By January 31 | If the electronic copy isn't accessed, a paper copy, branded as coming from D-Tools, is mailed to the business address listed on your application. |
After February 10 | If you still haven't received your 1099-K, contact D-Tools Support (see below). |
To avoid delays, make sure the owner email and mailing address on your D-Tools Payments account are current. If your business has moved or the owner has changed, contact D-Tools Support before the end of the year.
Do I need to do anything to have my 1099-K filed?
No. Your 1099-K is filed on your behalf with the IRS and with any state that requires it. No action is needed from you.
Why doesn't the amount on my 1099-K match my deposits?
The 1099-K shows gross sales before refunds, fees, credits, and adjustments are subtracted. It also groups payments by transaction date, not payout date. Your deposits reflect those deductions and timing differences, so the two totals will usually differ.
Do I have to report the 1099-K amounts on my tax return?
D-Tools can't provide tax advice. Please consult your tax professional or the IRS about how to reflect your 1099-K amounts on your return.
Does this apply to nonprofit organizations?
Yes. 1099-K reporting rules apply to both nonprofit and for-profit organizations.
Why did I receive a 1099-K from more than one company?
If you changed payment providers during the year, or used more than one processor, you will receive a separate 1099-K from each one. Each form reports only the payments that provider processed.
I haven't received my 1099-K, or I need another copy. What should I do?
First, check the inbox (and spam folder) of the business owner email listed on your D-Tools Payments account for an email from 1099-k@pmt-info.com. If you haven't received your 1099-K by February 10, or your mailing address has changed, contact D-Tools Support, and we'll email you a copy.
Contact D-Tools Support using the Chat icon in D-Tools Cloud, or email support@d-toolshelp.com. Include your business name and merchant ID (MID).
For questions about reporting your 1099-K on your taxes, please consult your tax professional.