Running a business means keeping track of a lot of things, and taxes are definitely one of them! If your business accepts credit, debit, or other electronic payments, you might receive a tax form called Form 1099-K.
Don't worry, it’s not as complicated as it sounds. This guide breaks down what the form is, why the numbers might look different than you expect, and how to access it.
In this article
What is Form 1099-K?
Form 1099-K is an informational tax form. Think of it like an annual summary of all the sales your business processed through payment cards (credit and debit) and other electronic payment methods, such as bank payments, during the past calendar year.
As your payment processor, Helcim is responsible for creating this form for your records.
We also file it on your behalf with the IRS (and relevant state governments if your business meets certain activity levels).
It's essentially a heads-up to the tax authorities about the gross amount of payments your business received through card transactions.
| Just like you might get a W-2 form from an employer summarizing your wages, a 1099-K summarizes your payment processing activity if you meet certain thresholds. It helps the IRS know how much money you’ve received through electronic payments. |
Who gets a Form 1099-K?
For the 2025 tax year, Helcim will issue a Form 1099-K if your business meets the federal or state reporting thresholds.
Federal Thresholds
You will receive a form if your business has:
More than $20,000 USD in gross volume, AND
More than 200 transactions.
State Thresholds
Many states have their own rules that are much stricter than the federal government. If you operate in states like Massachusetts, Vermont, Virginia, or Maryland (among others), you may receive a 1099-K even if you only processed $600 in sales.
| If you receive a form but didn't hit the $20,000 federal goal, it is likely because you triggered a lower state-level requirement. |
How to view your Form 1099-K
Your Form 1099-K is available in your Helcim account by January 31st each year. We will also notify you by email when it is ready.
| For step-by-step instructions on where to find the form and how to download it, please see our guide: Accessing your Form 1099-K. |
Why is Form 1099-K important for your business?
Even though Form 1099-K is an "informational" form, it's a very important one! Here's why:
For your taxes: The information on your 1099-K helps you (or your accountant) accurately report your business's gross income when filing your annual tax returns. It's a key piece of the puzzle for the IRS to understand your total sales activity.
IRS reporting: Helcim is required to send this form to the IRS if your business meets specific thresholds. This means the IRS will have a record of your payment card transactions, so it’s crucial that your records align with the information on this form.
Record keeping: It provides a clear, official summary of your payment card sales, which is great for your own financial records and helps ensure everything is consistent.
Why is the amount on my form higher than expected?
It is common for the number on your Form 1099-K to look higher than the "net sales" figure you see in your own bookkeeping. This is not a mistake.
The IRS requires us to report your Gross Payment Volume. This means the form reflects the total dollar value of every transaction you processed, before any money left your account.
Refunds
The most common reason for confusion is refunds.
Your accounting books: If you sell a $100 item and then refund it, you likely record that as $0 in sales.
Form 1099-K: The IRS requires us to report the original $100 sale. We do not subtract the refund from the total.
Example:
You process a sale for $100.
A week later, you process a full refund of $100 to the customer.
Result: Your Form 1099-K will still report the $100 sale.
Fees
Because Helcim typically deposits the full amount of your sales (a “gross deposit”) and charges fees separately, your bank deposits often match the sales figures more closely. However, if you have chosen net deposits (where fees are removed before deposit), your 1099-K will be higher than your deposits because it includes those fees.
Takeaway
When you file your taxes, use the 1099-K as your starting point for "Gross Receipts."
Then, you (or your accountant) will deduct your Refunds, Processing Fees, and Chargebacks as business expenses to arrive at your actual taxable income.
FAQs
Is Form 1099-K for Canadian businesses?
Form 1099-K is a tax form for businesses operating in the United States and is required by the IRS.
If your business is located in Canada and you exclusively operate within Canada, this form likely does not apply to you. Helcim only generates Form 1099-K for businesses that meet the US filing requirements.
I refunded a customer. Why is that sale still on my 1099-K?
The 1099-K is a report of transactions processed, not profit retained. Even if you returned the money, the original transaction still happened, so it must be reported to the IRS. You will deduct that refund as an expense on your tax return.
I am a non-profit organization. Why did I get a 1099-K?
The 1099-K is issued based on processing volume, not tax status. Even tax-exempt organizations receive a 1099-K if they process payments above the threshold.
You can use the form for your informational reporting.
What if I see a mistake or discrepancy on my Form 1099-K?
If If you notice an incorrect Business Name or Tax ID (TIN), please email 1099k@helcim.com immediately.
If you think the amount is wrong, please check your Refunds first. Remember that refunded sales are still included in the total.