You may qualify to receive a 1099-K form if you meet certain profit and sales thresholds. If you receive a 1099-K form, Airgoods is required to send a copy of the same form to the IRS and/or the tax authority of your state.
If you aren’t a US seller and aren’t paid in USD, you won’t receive a 1099-K from Airgoods.
Federal IRS Requirements
Airgoods is required to issue a 1099-K form to you and the IRS if you meet both of these requirements:
You had $20,000 USD in sales through Airgoods during the calendar year.
You received 200 or more individual orders through Airgoods over that same period.
If you have multiple active brand accounts on Airgoods, each account will be assessed individually. For brands that have multiple accounts that meet either one of the thresholds, you will receive a separate 1099-K for each account.
What is a 1099-K form?
Airgoods like other marketplaces, is required by US law to send out a 1099-K tax form.
A 1099-K form from Airgoods reports the total gross sales income you received through Airgoods payments during the last calendar year. “Gross sales” includes the total sales + shipping cost for orders that were shipped and paid out that year.
Don’t worry, though – you only pay taxes on your profit (gross sales minus expenses including Airgoods fees and deductions).
While Airgoods is not able to provide tax advice to our sellers, our goal is to help you understand and navigate these requirements. We want to make dealing with taxes as easy as possible.
For more information on the 1099-K form, you can also check out this IRS article here: https://www.irs.gov/businesses/understanding-your-1099-k
When will I get my 1099-K form?
If you met the qualifications and opted for electronic form delivery, you'll be able to view and download your electronic 1099-K tax form from the Payments and Taxes page in the Airgoods portal as soon as it's available, before January 31st. If you requested a mailed form, you should receive it mid-February.
If you believe you’ve met the 1099-K requirements through Airgoods payments within the calendar year but haven’t received a 1099-K form in the mail by the end of February, email us at [email protected].
You should also ensure that you have the correct taxpayer details, including the most up-to-date mailing address, on file with your shop.