Understanding your 1099-K Tax Form

Overview of the 1099-K tax form including the sending and receipt process, filing purpose, and other helpful information.

Understanding the 1099-K Tax Form

1099-K is an informational tax form that reflects the gross amount of credit and debit card or ACH Bank Transfer payments your business or law firm received in the previous calendar year. 

What is the 1099-K tax form?

• 1099-K is a report of the gross amount of electronic payments received through your Confido Legal account in the previous year. This form acts as a key reference point for assessing your taxable income, rather than serving as a definitive statement of your earnings.
• The gross amount on the 1099-K form does not include fees, credits, adjustments, refunds, cash equivalents, or discounts. It is important to compare the information on your 1099-K with your own financial records to ensure an accurate report of your net income.
• For more guidance, please consult a certified tax preparer to ensure proper filing and compliance.

Who issues my 1099-K?

• Tax form 1099-K is generated and sent via mail between January 1st and January 31st each year.
• Please note that Confido Legal does not generate or send 1099-K forms, but we can assist with verifying totals or requesting a corrected form if discrepancies arise.
• If you processed credit or debit card payments through your Confido Legal account during the previous tax year, your 1099-K form is issued and sent directly to your business address by our card network provider First Data Reporting Services. You will receive a 1099-K for each bank account processing cards.
• If you processed ACH Bank Transfer payments through your Confido Legal account during the previous tax year, your 1099-K form is issued and sent directly to your business address by our ACH provider Jack Henry & Associates or VeriCheck. You will receive one 1099-K that aggregates activity on all bank accounts processing payments via ACH Bank Transfers.

• If the totals reported on your 1099-K do not align with your payment history, please contact us at support@confidolegal.com for assistance in getting a revised form reissued. 
• If you have further questions about filing, please reach out to a certified tax professional for personalized assistance.
  
  

Additional IRS Resources

• Understanding Your Form 1099-K
• What to Do With Form 1099-K
  
  
  

Example 1099-K form 

Below is a redacted example of a 1099-K tax form issued by First Data Reporting Services.