Form 1099-K for US businesses
Every year, Airwallex issues the informational Form 1099-K to help our US-based merchants with their tax filing. The form reports payments settled through Airwallex during the previous calendar year.
Who receives a Form 1099-K?
Airwallex issues a Form 1099-K to any merchant entity that meets the following criteria in a calendar year:
Based in the United States: This includes all legal entities onboarded to Airwallex US for payment processing.
Meets transaction thresholds:
-
Card payments: Any gross card volume over US$0 may be reportable. There is no federal or state dollar minimum for card transactions.
-
Third-party network payments (including eligible Local Payment Methods): The legal entity meets either the federal threshold of over US$20,000 and 200 transactions, or an applicable state-level threshold (e.g., US$600), even if the federal transaction count is not met.
You may receive a 1099-K filed with a state authority even if you don't meet the federal threshold. This happens when your transaction volume exceeds a state's dollar-only threshold.
Important notice for merchants
The information on Form 1099-K is for informational purposes to assist with your tax preparation. It does not determine your final tax obligations. If you have questions about how to use this form, we recommend consulting a tax advisor.
Information included on your 1099-K
| Field on Form | Description |
|---|---|
| Filer's Name, Address, Telephone Number | Airwallex US' contact information. |
| Transactions Reported Checkboxes | Airwallex generates separate 1099-K forms for card and third-party network (non-card) transactions. |
| Payee's Name, Address | Your business's contact information as provided to Airwallex. |
| Payment Settlement Entity (PSE)'s Name and Phone Number | Airwallex US' contact information. |
| Account Number | Your Airwallex account ID. A separate 1099-K is generated for each account under the same legal entity. |
| Filer's TIN | Airwallex US' tax identification number (TIN). |
| Payee's TIN | Your tax identification number (TIN) provided to Airwallex (EIN, SSN, or ITIN). |
| Box 1a – Gross Amount | The total gross amount of successful payments in the previous calendar year, converted to USD. Refunds and chargebacks are not deducted. |
| Box 1b – Card Not Present Transactions | The total gross amount for payments where the card was not physically present. |
| Box 2 – Merchant Category Code | The merchant category code for your legal entity. |
| Box 3 – Number Of Payment Transactions | The total count of successful payments. Refunds or chargebacks are not counted separately. |
| Box 4 – Federal Income Tax Withheld | Any backup withholding performed by Airwallex, if applicable. |
| Boxes 5a–5l – Monthly Gross Amounts | A monthly breakdown of the total gross amount of payments. |
| Boxes 6–8 – State Income Tax Withheld | Information on state-level withholding, if applicable. |
How you will receive your 1099-K
From the 2025 filing season (for the 2025 tax year) onwards, your experience will vary based on how you use Airwallex.
For direct US merchants
We will email you and send an in-app notification to request your consent for electronic delivery of your 1099-K.
Log in to the Airwallex web app to provide your consent.
Once the form is filed, we will email an encrypted PDF to the user who gave consent.
If consent is not provided in time, we will mail a paper copy to your business address on file.
For platform merchants or connected accounts
Your platform is responsible for determining if a 1099-K is required and for providing it to you. They may use an authorised third-party provider, so you might receive communications from that provider on their behalf.
Frequently asked questions
When are 1099-K forms issued?
If you meet the reporting thresholds for the previous calendar year, Airwallex will provide your 1099-K by 31 January, in line with IRS and state deadlines.
What if my information is incorrect?
To correct your TIN, business name, or address, please contact [email protected] by 26 January 2025.
We are unable to change the reported gross amounts, as these reflect the transaction history of your account.
Who is Tax1099?
Tax1099 , powered by Zenwork Inc., is an authorised e-filing platform that Airwallex partners with to prepare and securely deliver 1099-K forms.
How is activity aggregated across accounts?
Card payments: Any positive card volume is reportable. We combine the volume and transaction counts across all accounts under the same legal entity to determine if you meet federal or state thresholds.
Third-party network payments: We combine the volume and transaction counts across all accounts under the same legal entity to determine if you meet federal or state thresholds.
How is the "gross amount" defined?
This is the total of all successful payments processed and settled via Airwallex in the previous calendar year.
It does not include deductions for fees, refunds, or disputes.
Do you issue 1099-Ks for closed accounts?
Yes. If a closed or disabled account met the reporting thresholds while it was active, we are still required to report that activity.
How does this apply to platforms?
Airwallex issues 1099-Ks for platforms using the "Collect payments directly" model and for connected accounts under the "Collect payments on behalf of connected accounts" model.
Platforms using the "Collect payments directly" model are responsible for filing 1099-Ks for their connected accounts.
View the different Payments for Platforms models.