Practice Better files 1099-K tax forms on behalf of practitioners who process payments through Practice Better Payments and meet IRS reporting thresholds. This guide will help you understand eligibility requirements, update your tax information, and access your forms when they're filed.
⚠️ This article is neither legal advice nor tax advice. We recommend consulting with a qualified tax professional or accountant for guidance on your specific tax situation.
In this article:
- What Is a 1099-K Tax Form?
- Who Receives a 1099-K Form?
- IRS Reporting Thresholds
- Important Deadlines
- Reviewing Your Tax Information Before Filing
- Accessing Your 1099-K Form After Filing
- Correcting Your 1099-K After Filing
- Understanding State-Specific Requirements
- Frequently Asked Questions
What Is a 1099-K Tax Form?
A 1099-K is an IRS tax information form that reports payment card and third-party network transactions. When you accept client payments through Practice Better Payments (powered by Stripe), you're using a third-party payment processor, which means Practice Better is required to file 1099-K forms for eligible accounts.
The 1099-K reports your gross payment volume — the total amount of payments you received before any fees or adjustments. You'll receive a copy of this form, and the IRS will also receive one. This helps ensure all income from payment processing is properly reported for tax purposes.
📍 Please note: This article applies only to practitioners who process payments through Practice Better Payments. If you use an external payment processor, you'll receive 1099-K forms directly from that processor.
Who Receives a 1099-K Form?
You'll receive a 1099-K form if your Practice Better Payment account meets all of the following criteria during the applicable calendar year:
- You’re based in the US or are a US taxpayer
- And you had greater than $20,000 USD in total gross volume and 200 transactions in the previous calendar year.
Both conditions must be met to receive a 1099-K. If you processed $25,000 but only had 150 transactions, you would not receive a 1099-K. Similarly, if you had 300 transactions but only $15,000 in volume, you would not receive one either.
💡 Tip: Whether you receive a 1099-K or not, you're still required to report all income on your tax return. The 1099-K is simply a reporting tool to help ensure compliance.
IRS Reporting Thresholds
The IRS has adjusted 1099-K reporting thresholds over recent years.
The 1099-K thresholds for different calendar years are as follows:
- Current and prior to 2024: Greater than $20,000 USD in total gross volume and 200 transactions
- 2024: Greater than $5,000 USD in total gross volume without a transaction limit
Important Deadlines
Understanding the 1099-K filing timeline helps you stay compliant and avoid penalties:
| Date | What Happens |
| January 22 | Practice Better files 1099-K forms with the IRS for all eligible, complete accounts. Forms become accessible in your Stripe Dashboard. |
| After January 22 | Practitioners can download their filed 1099-K forms from Stripe Settings > Documents |
| March 24 | Final deadline for electronic filing of corrected 1099-K forms |
⚠️ Important: If your tax information is incomplete by January 22, Practice Better cannot file your 1099-K form. This may result in IRS penalties and require additional steps to file your form independently.
Reviewing Your Tax Information Before Filing
Your tax information is stored in your Practice Better Payments-connected Stripe account. You'll need to update it directly through Stripe to ensure your 1099-K is filed correctly.
⚠️ Important: Practice Better must file 1099-K forms with the IRS by January 22. If your tax information is incomplete by this deadline, your form cannot be filed, which may result in IRS penalties and require additional work to correct.
What Information Can Be Updated?
Only three pieces of information can be updated on a 1099 tax form:
- Legal name (your full legal name if you're a sole proprietor, or your business legal entity name)
- Business address
- Taxpayer Identification Number (TIN) — this may be your Social Security Number (SSN) or Employer Identification Number (EIN)
Stripe is required by the IRS to report total gross volume. Payment amounts on your 1099-K cannot be changed.
💡 Tip: Review your information for accuracy before the January filing deadline to allow time for any verification issues to be resolved.
How to Review Your Information
To update your tax information before filing:
- Log in to your Practice Better account.
- Go to your Settings > Payments Dashboard.
- Click View in Stripe near the top-right.
- Log in to your Stripe account when prompted.
- Go to Settings > Business > Business Details.
- Review the following information for accuracy:
-
Legal name:
- If you are filing as a sole proprietor, please ensure your full legal name, as it appears on valid government-issued identification, appears on your account.
- If you are filing as a company, please ensure your company’s full legal name, as it appears on official registration documents, appears on your account.
- Business address
-
Taxpayer Identification Number (TIN): This may be your Social Security Number (SSN) or Employer Identification Number (EIN)
-
Legal name:
- To request any changes or corrections, email payments@practicebetter.io with the full details of your updates.
Practice Better will apply these updates to your pending 1099-K form before filing with the IRS.
Important Guidelines for Verifying Your Information
Your information must match exactly what the IRS has on file. The requirements depend on your business type:
Individual/Sole Proprietor:
- Enter your name exactly as it appears on your Social Security card
- Use your Social Security Number (SSN) as your TIN
- Include any middle names or initials exactly as shown on your Social Security card
Company/Corporation (LLC, Inc., etc.):
- Enter your company's legal entity name exactly as it appears on IRS files
- Include all spaces, commas, and suffixes such as "LLC" or "Inc."
- Use your Employer Identification Number (EIN) as your TIN
📍 Please note: Make sure the name and TIN you provide match exactly what's on file with the IRS. If the information cannot be verified against IRS records, the submission may be rejected.
Common verification issues include:
- TIN (Taxpayer Identification Number): Missing digits, invalid format, or doesn't match IRS records
- Address: Non-English characters, malformed zip codes, missing required fields (such as city or street address)
- Name: Doesn't match IRS records exactly, contains non-English or non-alphabetical characters, missing required business suffixes (LLC, Inc., etc.)
If you're uncertain about your exact tax details on file with the IRS, you can request an IRS Letter 147C by calling the IRS Business & Specialty Tax Line at 1-800-829-4933 (Monday through Friday, 7 AM - 7 PM local time). The IRS will provide a copy of what's on file for your business, which you can then use to ensure your correction matches their records exactly. For more information, visit the IRS Business Contact page →
If you encounter verification issues, contact Stripe Support for assistance.
Accessing Your 1099-K Form After Filing
Practice Better files 1099-K forms for eligible practitioners with the IRS by January 22 for the previous tax year.
Once your form has been filed, you can access it directly through your Stripe Dashboard.
To access your 1099-K form:
- Log in to your Practice Better account.
- Go to Settings > Payments Dashboard.
- Click View in Stripe near the top-right.
- Log in to your Stripe account.
- Go to Settings > Documents.
- Your 1099-K form will be listed under tax documents for the relevant year.
- Click Download to save a PDF copy of your form.
💡 Tip: Download and save a copy of your 1099-K form to your computer or cloud storage. Provide this to your tax preparer or accountant along with your other business income and expense records.
Correcting Your 1099-K After Filing
If you discover an error on your 1099-K after Practice Better has filed it with the IRS (after January 22), the IRS allows corrections to be filed through March 24.
How to Request a Correction
To request any updates or corrections, email payments@practicebetter.io with the full details of your updates.
What Can Be Corrected?
Only three pieces of information can be corrected on a filed 1099-K:
- Legal name
- Business address
- Taxpayer Identification Number (TIN)
You can't change the gross payment amounts reported on the form. Stripe is required to report total gross volume, and per IRS regulations, both full and partial refunds are not deducted from the gross volume.
⚠️ Important: The March 24 deadline is final for electronic corrections. If you need to make changes after this date, you may need to work directly with the IRS and your tax professional.
Understanding State-Specific Requirements
Most states accept 1099-K filings submitted through Stripe's automated system. However, a small number of states require "direct filing" with the state tax authority and do not accept submissions through payment processors.
State filing requirements vary and can change, so it's important to research your specific state's rules or consult with a tax professional familiar with your state's requirements.
For more detailed information about which states have special filing requirements, see Stripe's state filing documentation →
💡 Tip: If you have questions about your state's specific 1099-K filing requirements, consult with a qualified tax professional or accountant familiar with your state's tax laws
| STATE | 1099-K FILING REQUIRED | DOES STRIPE FILE | FILING DUE DATE* | FILING THRESHOLD | IF ISSUED, PROVIDE STATE NUMBER |
| Alabama | State Portal | ✅ | April 30 | Same as IRS | – |
| Alaska | No | – | – | - | – |
| Arizona | If State Witholding | ❌ | Same as IRS | $0 | – |
| Arkansas | CFSF | ✅ | Same as IRS | $2,500 | – |
| California | CFSF | ✅ | Same as IRS | Same as IRS | – |
| Colorado | If State Witholding | ❌ | Same as IRS | $0 | – |
| Connecticut | State Portal | ✅ | April 30 | Same as IRS | Connecticut Tax Registration Number |
| Delaware | No | – | – | - | – |
| District of Columbia | State Portal | ✅ | Same as IRS | $600 | – |
| Florida | State Portal | ✅ | April 30 | Same as IRS | – |
| Georgia | State Portal | ✅ | Same as IRS | Same as IRS | – |
| Hawaii | CFSF | ✅ | Same as IRS | Same as IRS | – |
| Idaho | No | – | – | - | – |
| Illinois | State Portal | ✅ | Same as IRS | $1,000 and 4 transactions | – |
| Indiana | If State Witholding | ❌ | Same as IRS | $0 | – |
| Iowa | If State Witholding | ❌ | February 15 | $0 | – |
| Kansas | CFSF | ✅ | Same as IRS | Same as IRS | Kansas Withholding Tax Account Number |
| Kentucky | If State Witholding | ❌ | Same as IRS | $0 | – |
| Louisiana | If State Witholding | ❌ | Same as IRS | $0 | – |
| Maine | State Portal | ✅ | – | Same as IRS | – |
| Maryland | State Portal | ✅ | Same as IRS | $600 | Maryland Central Registration Number |
| Massachusetts | State Portal | ✅ | Same as IRS | $600 | – |
| Michigan | No | – | – | - | – |
| Minnesota | If State Witholding | ❌ | Same as IRS | $0 | – |
| Mississippi | If State Witholding | ❌ | – | $5,000 | – |
| Missouri | No | – | – | - | – |
| Montana | State Portal | ✅ | April 1 | $600 | – |
| Nebraska | No | – | – | - | – |
| Nevada | No | – | – | - | – |
| New Hampshire | No | – | – | - | – |
| New Jersey | CFSF | ✅ | Same as IRS | $1,000 | – |
| New Mexico | No | – | – | - | – |
| New York | State Portal | ✅ | April 30 | Same as IRS | – |
| North Carolina | State Portal | ✅ | Same as IRS | Same as IRS | NC Withholding ID Number or EIN |
| North Dakota | If State Witholding | ❌ | Same as IRS | $0 | – |
| Ohio | No | – | – | - | – |
| Oklahoma | No | – | – | - | – |
| Oregon | State Portal | ✅ | Same as IRS | Same as IRS | – |
| Pennsylvania | No | – | – | - | – |
| Rhode Island | State Portal | ✅ | Same as IRS | $100 | – |
| South Carolina | If State Witholding | ❌ | Same as IRS | $0 | SC Withholding File Number or EIN |
| South Dakota | No | – | – | - | – |
| Tennessee | State Portal | ✅ | April 30 | Same as IRS | – |
| Texas | No | – | – | - | – |
| Utah | If State Witholding | ❌ | Same as IRS | $0 | – |
| Vermont | State Portal | ✅ | April 30 | $600 | Vermont Withholding Account Number |
| Virginia | State Portal | ✅ | April 30 | $600 | – |
| Washington | No | – | – | - | – |
| West Virginia | If State Witholding | ❌ | Same as IRS | $0 | – |
| Wisconsin | If State Witholding | ❌ | Same as IRS | $0 | Wisconsin Withholding Tax Number** |
| Wyoming | No | – | – | - | – |
Frequently Asked Questions
- How is the total gross volume calculated on my 1099-K?
- What if I switched payment processors mid-year, or I have to report split income?
- Should I provide my 1099-K to my accountant or tax preparer?
- What's the difference between the gross income on my 1099-K and my actual taxable income?
- Why do refunds not reduce the total on my 1099-K?
- My 1099-K was issued to my personal SSN, but I wanted it issued to my business EIN. How do I fix this?
- What if I need to change from using my SSN to my EIN (or vice versa)?
- Can Practice Better support help me understand the tax implications of my 1099-K?
- Who do I contact if I have issues with my 1099-K form?
- Do clients receive 1099-K forms for payments they make?
- Does my 1099-K include payments from packages, memberships, and one-time services?
- What are processing fees, and how do they relate to my 1099-K?
- What if I closed my Practice Better account but still need my 1099-K?
- I switched from Practice Better Payments to an external processor mid-year. Can I still access my partial-year 1099-K?
Q: How is the total gross volume calculated on my 1099-K?
A: Your 1099-K reports the total gross amount of payment card transactions and third-party network payments you received through Practice Better Payments during the calendar year. This includes all payment types processed through Practice Better Payments, including credit cards, debit cards, and ACH/bank transfers.
Per IRS regulations, both full and partial refunds are not deducted from the gross volume reported on your 1099-K. The form reflects the total amount of payments you received before any refunds, chargebacks, or processing fees.
Q: What if I switched payment processors mid-year, or I have to report split income?
A: Practice Better will file a 1099-K only for payments processed through Practice Better Payments. If you switched from another payment processor to Practice Better (or vice versa) during the year, you may receive 1099-K forms from multiple processors.
It’s recommended to consult a tax professional regarding the proper reporting of multiple or split income.
Q: Should I provide my 1099-K to my accountant or tax preparer?
A: Yes. Your 1099-K is an important tax document that shows your gross payment processing income. Provide it to your accountant or tax preparer along with your other income and expense records. They'll use it to ensure accurate reporting on your tax return.
📍 Please note: The gross amount on your 1099-K is before any business expenses, processing fees, or deductions. Your accountant will help you calculate your actual taxable income by subtracting allowable business expenses.
Q: What's the difference between the gross income on my 1099-K and my actual taxable income?
A: Your 1099-K reports gross payment volume — the total amount of payments you received. This is not your taxable income. Your actual taxable income is calculated by subtracting legitimate business expenses from your gross income.
For example:
- Gross payment volume (from 1099-K): $50,000
- Minus business expenses: -$20,000 (supplies, software, marketing, etc.)
- Minus payment processing fees: -$1,500
- Net taxable income: $28,500
Your tax preparer or accountant can help you identify all allowable deductions to accurately calculate your taxable income.
Q: Why do refunds not reduce the total on my 1099-K?
A: The IRS requires payment processors to report total gross volume — the full amount of payments received during the year. Per IRS regulations, both full and partial refunds are not deducted from this total because they represent separate transactions that occurred after the original payment.
Think of it this way: when a client pays you $500, that's reportable income. If you later refund them $100, that refund is a separate business expense you can deduct on your tax return. Your 1099-K reflects the $500 payment, and your accountant will help you account for the $100 refund as a business expense.
Q: My 1099-K was issued to my personal SSN, but I wanted it issued to my business EIN. How do I fix this?
A: The way your 1099-K is issued depends on your business type in your Stripe account:
- Individual business types (such as Sole Proprietorship) always issue 1099-K forms to the primary account holder's personal credentials (Name + SSN)
- Company business types (such as Corporation, LLC, Non-Profit) always issue 1099-K forms to the business legal entity (Business Name + EIN)
If your 1099-K was issued to the wrong entity type, you may need to update your business type in your Stripe account. However, changing your business type does not automatically correct already-filed tax forms. You'll need to contact Stripe Support for assistance with correcting the entity type on a filed form.
📍 Please note: Correcting your tax form does not change your business structure with the IRS or your state. If you've legally changed your business structure (for example, from sole proprietor to LLC), you should also update your business type in Stripe to ensure future tax forms are issued correctly.
Q: What if I need to change from using my SSN to my EIN (or vice versa)?
A: The type of TIN you use (SSN vs. EIN) is determined by your business type in your Stripe account:
- Individual business types (such as Sole Proprietorship) use your Social Security Number (SSN)
- Company business types (such as LLC, Corporation, Non-Profit) use your Employer Identification Number (EIN)
If you need to change which type of TIN you're using, you'll need to update your business type in your Stripe account. However, business type cannot be changed once your legal entity has been verified in Stripe.
If you've already been verified and need to change your business type (for example, you formed an LLC and now have an EIN), you'll need to contact Stripe Support for assistance. This change may require filing a corrected 1099-K if forms have already been filed.
📍 Please note: Changing your business type in Stripe for tax purposes does not legally change your business structure with the IRS or your state. If you've legally changed your business structure (for example, from sole proprietor to LLC), make sure you've also completed all required filings with the IRS and your state before updating your business type in Stripe.
Q: Can Practice Better support help me understand the tax implications of my 1099-K?
A: Practice Better support can help you understand how to access your 1099-K form, update your tax information in the system, and triage technical issues related to the filing process.
For questions about tax implications, deductions, or how to report your 1099-K income on your tax return, we recommend consulting with a qualified tax professional or accountant. They can provide personalized guidance based on your specific business structure and financial situation.
Q: Who do I contact if I have issues with my 1099-K form?
A: The right contact depends on the type of issue you're experiencing:
For technical issues in Practice Better:
- Accessing your Payments Dashboard
- General questions about the 1099-K filing process
Contact Practice Better Payments support: payments@practicebetter.io
Our team can help troubleshoot Practice Better-specific issues and triage whether your question requires Stripe Support assistance.
For issues in Stripe:
- Accessing your form in Settings > Documents
- Verification failures when updating tax information
- Correction processing questions
- Using the Delta feature for multi-source income
Contact Stripe Support directly through your Stripe Dashboard.
For tax guidance:
- Understanding tax implications of your 1099-K
- Calculating taxable income
- Identifying allowable deductions
- Reporting requirements for your specific situation
Consult with a qualified tax professional or accountant.
💡 Tip: If you're unsure whether to contact Practice Better or Stripe Support, start with Practice Better support. Our team can help determine whether your issue requires Stripe Support assistance and guide you accordingly.
Q: Do clients receive 1099-K forms for payments they make?
A: No. The 1099-K is issued to the recipient of payments (the practitioner), not to the person making payments (the client). Your clients do not receive 1099-K forms for paying you through Practice Better Payments.
Q: Does my 1099-K include payments from packages, memberships, and one-time services?
A: Yes. Your 1099-K includes all payment types processed through Practice Better Payments during the calendar year, regardless of whether they came from package purchases, membership subscriptions, one-time service bookings, or any other payment method available in your Practice Better account.
Q: What are processing fees, and how do they relate to my 1099-K?
A: Processing fees are the fees charged by Stripe for processing your payments (typically a percentage of each transaction plus a fixed amount). These fees are automatically deducted from your payouts.
Your 1099-K reports the gross payment amount before processing fees are deducted.
Q: What if I closed my Practice Better account but still need my 1099-K?
A: If you closed your Practice Better account during or after the tax year for which you need a 1099-K, your form will still be accessible through your Practice Better Payments-connected Stripe account, as long as that account remains active.
Follow the same steps outlined in the "Accessing Your 1099-K Form After Filing" section above to log into your Stripe account and download your form from Settings > Documents.
Q: I switched from Practice Better Payments to an external processor mid-year. Can I still access my partial-year 1099-K?
A: Yes. Practice Better will file a 1099-K for all payments you processed through Practice Better Payments during the portion of the year you used the service, as long as you met the IRS thresholds ($20,000+ in gross volume AND 200+ transactions).
You can access your Practice Better Payments 1099-K through your Stripe account using the steps outlined in the "Accessing Your 1099-K Form After Filing" section above. If you met the eligibility thresholds with your new payment processor, you should also receive a separate 1099-K from them for transactions processed during the remainder of the year.
⚠️ This article is neither legal advice nor tax advice. We recommend consulting with a qualified tax professional or accountant for guidance on your specific tax situation.