If you have 200 transactions and also generate more than $20,000 in sales in a calendar year, Kidizen is required to send you a 1099-K. This information will also be reported to the IRS and your state tax authority, where applicable. By IRS Rules, if you are making a profit of over $600 you are responsible for reporting it to the IRS regardless of whether you receive a 1099-K. Kidizen is required to send a 1009-K only to those who sell more than $20,000 in a calendar year.
Form 1099-K is an IRS tax form that includes the gross amount of all sales you received within a calendar year. If you sell more than $20,000 Kidizen will send you a 1099-K by February 15th of the following calendar year to the email address associated with your Kidizen account. If you’ve met this threshold and still haven’t received your 1099-K from us after March 1st of the following calendar year, contact us and we will resend it to you.
Please note that refunds, shipping costs, and payments made to clients (if you are a Style Scout) are not subtracted from the total amount. You should consult with your tax advisor to determine how best to use the information on your Form 1099-K and to determine what can be used as a deduction as Kidizen cannot provide tax advice. You may also request a Sales Report from Kidizen that will include a detailed report of your refunds, amount spent on shipping (if purchased through Kidizen), and client payments (if you are a Style Scout) by emailing us at email@example.com.
If you are nearing the $20,000 threshold, Kidizen will reach out to you via email by November 30th of the calendar year and request that you submit a Form W-9 if we do not have one on file from previous years and if your information has not changed.