US: 1099-K
What is the 1099-K Form?
Every year, the United States’ federal Internal Revenue Service (IRS) and certain state governments require companies to report payments settled to US entities within the previous calendar year in a form called 1099-K.
In 2025, Airwallex is obligated to file 1099-K forms for all merchant entities who fit the following criteria for the 2024 calendar year:
- Based in the United States. All legal entities onboarded to Airwallex US for payments will be included;
- Exceeded US$ 5,000 in gross payments volume;
- Exceeded state thresholds if the merchant entity is registered in a state that has different requirements from the IRS
To find out more, visit IRS.gov for detailed instructions and a sample of the form .
Information included on a 1099-K from Airwallex
| Fields | Comments |
|---|---|
| Filer's Name, Address, Telephone Number | Airwallex US’ contact information. |
| Transactions Reported Checkboxes | Airwallex will generate separate 1099-K forms for card and non-card (third party network) transactions for the same account in accordance with IRS’ instructions. |
| Payee’s Name, Address | Contact information for your business that was provided to Airwallex. |
| Payment Settlement Entity (PSE)'s Name and Phone Number | Airwallex US’ contact information. |
| Account Number | Your Airwallex account ID. Airwallex will generate a separate 1099-K form for each account owned by the same legal entity. |
| Filer’s TIN | Airwallex US’ tax identification number (TIN). |
| Payee’s TIN | Your tax identification number (TIN) provided to Airwallex. This could be either your Employer Identification Number (EIN) or Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). For your data protection, the form that we share with you may have your TIN number masked. However, the copies that Airwallex sends to the IRS and state tax authorities will include your complete tax identification number. |
| Box 1a – Gross Amount Of Payment Card/Third-party Network Transactions | The total gross amount for payments that have succeeded in the previous calendar year, converted to USD. Refunds or chargebacks are not excluded from this amount. Payment card and third party network (non-card) transactions will be reported on separate 1099-K forms. |
| Box 1b – Card Not Present Transactions | The total gross amount for payments where the card was not present. |
| Box 2 – Merchant Category Code | The merchant category code for your legal entity. |
| Box 3 – Number Of Payment Transactions | The total number of payments that have succeeded in the previous calendar year. Refunds or chargebacks transactions are not counted separately. |
| Box 4 – Federal Income Tax Withheld | Any backup withholding Airwallex has done, if applicable. |
| Boxes 5a–5l – Gross Amount Of Payment Card/Third-party Network Transactions Made | Total gross amount of payments split by calendar month. |
| Boxes 6–8 – State Income Tax Withheld | Information related to withholding on a state level, if applicable. |
When are 1099-K forms issued?
If your business qualifies for a 1099-K based on your sales in the previous calendar year, Airwallex will issue you a 1099-K electronically by the 2nd week of January. Airwallex works with a reputable tax filing platform called Tax1099 to securely deliver the form to you and file with the IRS and state authorities. To access your electronic copy, look out for an email from Tax1099 support and provide your consent to receive the file. Airwallex will use the primary contact email address you provided to deliver the electronic copy. You will also be provided an option to receive a paper copy of the form at the business address that Airwallex had on file in December of the previous calendar year.
Airwallex needs to file your 1099-K forms to certain states by 31 January 2025 and the IRS by 31 March 2025. If you find any incorrect information on your form, you need to contact [email protected] to update the information by 26 January 2025 for state filings and by 21 February 2025 for the IRS filing.
Who is Tax 1099 and why am I receiving an email from them?
Tax 1099 , powered by Zenwork Inc., is an IRS authorised e-filing and compliance platform that Airwallex has contracted with to file 1099-Ks with the IRS and state filing services. Airwallex uses Tax 1099 to organise delivery of electronic or physical versions of the 1099-K to you.
Why am I receiving multiple 1099-K forms for a single legal entity?
Airwallex follows industry practice and IRS’ guidance to issue separate forms for card vs. third party network (such as Klarna, direct debit and others) transactions and a different 1099-K for each merchant account you have with Airwallex. Here’s an example:
Legal entity ABC has 3 accounts processing payments with Airwallex.
If the gross amount of card and third party network payments settled to Legal entity ABC is over US$ 5,000 or the state threshold where the legal entity is based in, Airwallex will issue six 1099-Ks for your legal entity:
- Account 1 - Card payments
- Account 1 - Third party network payments
- Account 2 - Card payments
- Account 2 - Third party network payments
- Account 3 - Card payments
- Account 3 - Third party network payments
Even if individual accounts have not processed US$ 5,000 in volume, 1099-Ks will be issued as long as the total gross amount at the legal entity has exceeded the federal or state thresholds.
Definition of “gross amount” on 1099-K form
“Gross amount” is the total of all payments that were successfully processed and settled via Airwallex in the previous calendar year. In line with IRS guidance, Airwallex does not deduct any fees, refunds, disputes from the “gross amount.”
To calculate this amount, Airwallex adds up the gross payment amounts for all payments captured in the previous calendar year based on your merchant timezone setting. Any payment amounts that are not in USD are converted using an average rate in line with IRS’ guidance. The conversion rate to USD used to calculate the total in the 1099-K may differ from the conversion rate at the time of your settlement and may result in slight differences between your actual settlements and what is reported on the form.
Do note that payments settled to you directly by payment providers (i.e. not from Airwallex) are not included in this amount and those providers are responsible for providing you with a 1099-K for transactions settled outside of Airwallex.
My tax details on the 1099-K form are not valid
If you find your TIN, business name or address details are incorrect, you need to contact [email protected] to update the information by 26 January 2025 for state filings and by 21 February 2025 for the IRS filing.
Airwallex is not able to update the gross amounts we report as these are based on the payments on your account during the previous calendar year.
Payments for Platforms
Airwallex will issue and file 1099-Ks to the IRS and state authorities for the following merchants whom we directly settle funds to:
- Platforms under the “Collect payments directly” model
- Connected accounts under “Collect payments on behalf of connected accounts” model
Platforms operating under the “Collect payments directly” model are responsible for filing the 1099-Ks to the IRS and state authorities for the connected accounts. If you are unfamiliar with this requirement and the filing process, we recommend that you consult a tax advisor. There are several third party 1099 filing platforms that could help you submit the forms to the IRS and state authorities.