Understanding Form 1099-K

For tax year 2025, Dwolla will report 1099-K forms for all individuals (1) using Dwolla through a Dwolla client to receive payments for goods or services and (2) who receive $20,000 in payments for goods & services from over 200 transactions during that calendar year. Dwolla is also required to report transactions received by users in its network to their state tax authority in a Form 1099-K if the payments received by those users exceed their state threshold. For this purpose, Dwolla reports gross payments. Reporting payments on the Form 1099-K does not automatically deem those payments to be income. You will need to work with your tax advisor and produce other records to demonstrate which payments are taxable income.

Dwolla provides payment infrastructure software that a business, a Dwolla Client,  embeds within its website or app. If you received a notice from us, it is because you created an account with us through a Dwolla Client’s website or app. Dwolla files these forms for transactions that take place through your Dwolla account. 

For the 2025 tax year, Dwolla is transitioning to a new third-party tax reporting provider, TaxBandits, to support the collection of tax information and the distribution of Form 1099-Ks.

As part of this change, all end users who qualify for a Form 1099-K will be required to submit Form W-9 information, even if they have successfully provided this information in previous tax years. This ensures accurate reporting and timely delivery of tax forms.

Please visit the IRS’s website for more specific information about understanding your Form 1099-K. 

Dwolla will submit the information you provided when you opened your Dwolla account—through a Dwolla client’s platform—to the IRS verification service. If the IRS cannot confirm that the TIN you provided and the name on your account match, Dwolla will request that you provide correct Form W-9 information. If you have concerns about the information the IRS has on file for you, we recommend that you follow up directly with the IRS.

The IRS requires that we report the gross receipts from reportable payment transactions made through your Dwolla account during the calendar year. Form 1099-K reports gross payments before adjustments (such as refunds) and before expenses, so the amount on the Form 1099-K may not match the income you report on your tax return. Use this form in conjunction with other records (bank statements, invoices, etc.) to report taxable income, if any. Please consult your tax advisor to determine your tax reporting requirements. 

You will receive an email from Dwolla when your Form 1099-K is available. By creating an account with a Dwolla client, you agreed to Dwolla’s terms of service and to receive electronic communications regarding your Dwolla account.  

If you wish to receive a paper copy of your Form 1099-K, please notify Dwolla at support@dwolla.com as soon as possible.

Form 1099-Ks will be available by January 31 each year.

Dwolla reports only the transactions received through your Dwolla account. Dwolla does not and cannot aggregate all transactions you may have conducted through a Dwolla client using different payment methods. Those transactions will need to be reported separately.

Please contact the Dwolla client referenced in your Notice of IRS Tax Form Eligibility email to request additional copies or support.

Please email Dwolla at dwolla1099-k@dwolla.com to request that your Form 1099-K be delivered by mail.

Yes. Dwolla has set up a secure method to retrieve your Form 1099-K. You will receive an email from Dwolla when your Form 1099-K is available. Click on the link in the email and log in using your email address. Our system will email you a one-time passcode that you’ll enter to access the portal and your Form 1099-K. Please take great care to not share the details of your Form 1099-K or your one-time passcode with any third party. Dwolla will never request your one-time passcode over email, text, or phone call. 

The IRS regulations do not require that payment service entities report or determine what is taxable income. Rather, we are required to report gross payments received on our platform in your Form 1099-K. This form should be used in conjunction with other records (bank statements, invoices, etc.) to report taxable income, if any. Please consult with your tax advisor to determine your tax reporting requirements.

If you received a request to provide Form W-9 information, please provide the correct information for that form. Please also follow up with the Dwolla client whose services you use to update your account information.

If you have not received a request to provide Form W-9 information, please contact the Dwolla client identified in your Notice of IRS Tax Form Eligibility email and request an update to your information. 

If you have a Dwolla account being used by someone else, please contact the Dwolla client identified in your Notice of IRS Tax Form Eligibility email and request to close your account, and have the person receiving funds open a Dwolla account for themselves. For this tax year, please also notify the Dwolla client that a third party will need to receive the Form 1099-K for your account. You will need to provide evidence that you are not the recipient of the payments (this may include bank statements or another form of attestation.)

If you believe the amounts reported in the 1099-K are inaccurate for the taxpayer listed on the form, please contact dwolla1099-k@dwolla.com to receive instructions on how to submit supporting data for Dwolla to review.

Please contact the Dwolla client identified in your Notice of IRS Tax Form Eligibility email immediately. If an account has been created in your name, you will need to work with them to deactivate your account and provide evidence that you are not the user who created the account.

While Dwolla provides as much information as possible to help you understand your Form 1099-K, Dwolla cannot assist with your tax return or provide advice on your tax situation.

Form W-9 information is the information Dwolla needs  to fill out and file Form 1099-K forms for an individual or a business. If you received a Form W-9 information request from Dwolla, it is for one of two possible reasons: (1) the information you have already provided to us did not match a taxpayer on record with the IRS and thus we require updated information, or (2) you are eligible for a Form 1099-K but have not provided us information required to file the form.

Dwolla cannot accept the Form W-9 information in any format other than through the link that has been provided to you. This helps to ensure security and accuracy of the information collected. If you need a new Form W-9 link sent to you, please contact dwolla1099-k@dwolla.com.

A TIN is a Taxpayer Identification Number. Typically, for an individual, this is a Social Security Number (SSN) for U.S. citizens or an Individual Taxpayer Identification Number (ITIN) for non-citizens. For a business, the TIN is an Employer Identification Number (EIN). These numbers are issued to you or your business by the IRS. More information is available on the IRS website.

Non-U.S. residents must provide Form W-8BEN to be exempt from tax reporting. Dwolla’s terms of service do not permit non-U.S. residents to hold a Dwolla account, and as a result we will suspend your account upon receipt of this confirmation. 

If Dwolla is required to report a Form 1099-K for your Dwolla account and we do not receive correct and complete Form W-9 information, Dwolla will suspend your Dwolla account. You will no longer be able to send or receive payments through the Dwolla client identified in your Notice of IRS Tax Form Eligibility email.

When your Form 1099-K is available for you to view and download, Dwolla will send you an email that includes a link to Dwolla’s 1099-K portal. Click the link to access the portal. This link is personal to you and should not be shared with others. You will not be able to retrieve your Form 1099-K without your link.

Click on the link in the email you receive from Dwolla. Log in using your email address, and our system will email you a one-time passcode.  Enter that passcode to access the portal and your Form 1099-K. 

Each account has its own unique URL to access the 1099-K portal. The email you receive links to your unique portal URL.