In 2022, the IRS updated the thresholds for receiving a 1099-K, so many more users may now receive a 1099-K form.

Users may be required to receive a 1099-K tax form from Dwolla, Inc., which reports on earnings received via a financial network like the Horizon Payment Center. Dwolla, Inc. is a third-party company that operates and performs all the financial transactions made with the Horizon Payment Center.

A 1099-K tax form indicates payment earnings that have passed through a third-party financial network like the Horizon Payment Center. They are issued by credit card and ACH processing companies to report on financial earnings that have passed through their processing networks. This form is not the same as a 1099-MISC or a 1099-NEC tax form which officials commonly receive from officiating organizations. These tax forms are completely different and may reflect the exact same earnings in all these tax forms.

Dwolla Inc. is a third-party financial processor that operates the ACH bank transfer functionality of the Horizon Payment Center. Any payment transaction processed through the Horizon Payment Center is processed and handled by Dwolla Inc. As a financial network provider, they have both federal & state reporting requirements to indicate and disclose funds that pass through their processing network. This information is reported via tax Form 1099-K.

​

A 1099-K tax form is not the same as a 1099-MISC or a 1099-NEC tax form which officials commonly receive from officiating organizations. These tax forms are completely different and may reflect the same earnings in multiple reports.

If you've earned enough money, both your officiating organization AND Dwolla Inc. will be required to send you tax forms regarding those same funds. A 1099-K form does not replace your officiating organization's requirements to send you a 1099-MISC or 1099-NEC tax form. Your officiating organization may send you a 1099-MISC, 1099-NEC, or W-2 tax form, and Dwolla Inc. will also send you a 1099-K tax form for the exact same funds if you meet the reporting thresholds shown below.

Both the federal and state Form 1099-K are informational returns, and the gross payments reported on a Form 1099-K do not necessarily represent reportable income. The form should be used in conjunction with other tax records (bank statements, invoices, etc.) to report taxable income if any. Please consult your tax advisor to determine your tax reporting requirements.

​

To receive a 1099-K tax form from Dwolla, Inc., you must have received payments via the Horizon Payment Center and meet the following conditions:
​

In addition to federal IRS thresholds that trigger the issuance of a 1099-K tax form, some individual states also have stricter rules for when a 1099-K tax form must be issued to an individual. If the state you reside in has one of these stricter rules, you may also be eligible to receive a 1099-K from Dwolla Inc.

​

Both the federal and state Form 1099-K are informational returns, and the gross payments reported on a Form 1099-K do not necessarily represent reportable income. The form should be used in conjunction with other tax forms (like W-2's, 1099-MISC, and 1099-NEC forms) and tax records (bank statements, invoices, etc.) to determine your taxable income. You should consult your tax advisor to determine your tax reporting requirements.

No. A 1099-K form is entirely separate. Officiating organizations are still required to comply with state & federal reporting thresholds for W-2, 1099-NEC, and/or 1099-MISC tax forms. A 1099-K tax form does not replace this reporting requirement. You should consult your tax advisor to determine your tax reporting requirements.

If you want to learn more, you can refer to the IRS website, which outlines full details on the 1099-K tax form, as well as the traditional 1099-MISC and 1099-NEC tax forms you will still continue to receive from your officiating organizations.