This article covers income reporting to the IRS via the form 1099-MISC
Why does Fourthwall need to report my income?
If you are a US-based creator and received more than $600 in payouts from Fourthwall during the calendar year, we are required by law to report your income to the IRS. This is done via Form 1099-MISC where it outlines the amount earned in a calendar year.
Only individuals who are US citizens will receive a Form 1099-MISC from Fourthwall. All other types of legal entities (Corporations, partnerships, LLCs, international creators, etc.) are responsible for reporting taxes themselves by consulting a tax accountant.
What is a Form 1099-MISC?
Form 1099-MISC is an informational return, a tax form produced by platforms like Fourthwall where your total amount paid out during that calendar year is reported to you and the IRS.
This form is super important because it's used to report income you made from various sources, like sponsorships, freelance gigs, or any other earnings that don't come from a regular employer. It's different from the W-2 form that you'd get from a typical 9-to-5 job. So, if you've been rocking it in the digital world and earning some cash (over $600), keep an eye out for the 1099-MISC from each income source! It helps you keep track of your earnings and makes sure your tax game is on point. Remember, staying organized and informed about these forms is key to managing your finances like a pro! 🌟💰📝
Additional information and examples of Form 1099-MISC can be found here.
How is my Form 1099-MISC amount calculated?
The amount is based on cash paid out (payouts) during the year, not cash earned during the year. For example, your December 2023 profits will be processed in the January 2024 payout as such the amount earned in December will be excluded from your 2023 Form 1099-MISC and counted for next year’s Form 1099-MISC.
Who will receive a 1099-MISC?
Creators who are US based and have received $600 or more in payouts during the 2023 calendar year will receive a 1099-MISC. This is based on the threshold set by the IRS threshold.
If you do not meet the thresholds above, you will not receive a Form 1099-MISC from Fourthwall. Stripe Connect automatically identifies this based on your payouts and the information you provided on your Stripe Connect profile.
When will I receive my Form 1099-MISC?
1099-MISC Forms will be ready by January 31st. They will be available via your Stripe Connect dashboard.
I meet the threshold for 2023 but I do not see a 1099-MISC on my Stripe Connect dashboard - what can I do?
- Confirm that your personal details have been updated to include full name, address, and other required information.
- If you submitted updated personal details after January 18th, 2023, and have not yet received your 1099-MISC form, you can expect your 1099 form to be prepared by March 31st, 2023. In the meantime, you can review the Payouts details in your dashboard for more information about your financial metrics.
Please contact us if:
- You have received a Form 1099-MISC mistakenly
- You think you should have received a Form 1099-MISC but have not
- You feel the Form 1099-MISC you received includes inaccurate information
If you have any questions, please feel free to contact us at support@fourthwall.com.