2024 is now in the books. And, that means many things, among them tax season. This year will be a bit different from previous years, since most of you will receive your 1099 from Dwolla (the financial company that powers the Wallet).
Here is a convenient breakdown on what tax forms you should receive or will be available to you for your work done on our behalf in 2024.
Electronic Copies of 2024 1099s
Service Provider:
For contractors paid directly from InfoTrack (One Legal) - Greatland.com
For contractors who were paid only out of ServeManager/Wallet – Dwolla
<Important: please check your spam/junk folders in case the emails from Greatland.com and/or Dwolla are misdirected there>Delivery Date: By January 31, 2025
Physical Copies of 2024 1099s
Physical copies of the Greatland-issued 1099s (from InfoTrack/One Legal) will be mailed in addition to the electronic copies
Mailing Date: By January 31, 2025
Types of 2024 1099s You Will Receive
One Legal Contractors will receive two types of 2024 1099 forms depending on your payment methods:
1099-NEC (one document)
Issued to: Contractors who worked in Docupeak and ServeManager last year and received check and/or ACH payments directly from InfoTrack (One Legal)
Provider: InfoTrack (One Legal)
Eligibility: Contractors paid $600.00 or more last year
1099-K (two documents)
Issued to: Contractors who worked in ServeManager and received payments via Wallet (Dwolla)
Providers: Dwolla / InfoTrack (One Legal)
Eligibility: Contractors receiving $5,000.00 or more in 2024 via the Wallet
Purpose: To provide revenue information for tax year 2024 (for more information, see the Dwolla FAQ page: https://www.dwolla.com/updates/lets-talk-1099ks#now_what).
In addition to the Dwolla 1099-K for all revenue paid through Wallet/Dwolla, InfoTrack (One Legal) will send a separate 1099-K Support Non-Taxable Income document by email that will detail reimbursable expenses (e.g., fees advanced) that are considered non-taxable income.
If you have any questions or concerns about your tax forms, please contact us at [email protected] (quickest and most direct) or [email protected].
Also, see the Dwolla site for more information on 1009-Ks in general: https://www.dwolla.com/updates/lets-talk-1099ks#now_what.
Why You Did Not Receive a 1099-NEC
(And What to Do Instead)
1. Why You Did Not Receive a 1099-NEC (and Why That’s Correct)
You did not receive a 1099-NEC from One Legal because all payments made to you were processed through Dwolla (the company that we use to run the ServeManager wallet into which you were paid). Dwolla is, in IRS lingo, a Third-Party Settlement Organization (TPSO). The IRS requires 1099-NEC only for direct payments made by a business (e.g., ACH or check), not for payments processed by a TPSO.
IRS Source:
Instructions for Forms 1099-MISC and 1099-NEC (2023):
https://www.irs.gov/instructions/i1099mec
"Do not report payments to corporations, or payments made via third-party networks (e.g., PayPal, Venmo, or Dwolla) on Form 1099-NEC."
2. Why You Did Not Receive a 1099-K Either
You also did not receive a 1099-K from Dwolla because the IRS threshold for issuing a 1099-K is $5,000 in gross payments for goods and services (for tax year 2024). Since your total earnings through Dwolla were less than $5,000, Dwolla was not required to issue a 1099-K.
IRS Source:
IRS Form 1099-K FAQs:
https://www.irs.gov/businesses/understanding-your-form-1099-k
"For tax year 2024, a third-party payment network (like Dwolla) must report gross payments on Form 1099-K when total payments to a recipient exceed $5,000, regardless of the number of transactions."
3. What You Should Do Instead
Even though you didn’t receive a tax form, the IRS still requires you to report all income received as an independent contractor or self-employed individual.
How to report your income:
· Report total income on Schedule C (Form 1040).
· Use your ServeManager ServerPay report or wallet transaction history, and/or bank statements to document your income.
· You do not need a 1099 form to file. The IRS does not require it.
IRS Source:
IRS Self-Employed Individuals Tax Center:
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center
"You must report all income you receive, even if you do not receive a Form 1099-MISC, 1099-K, or any other information return."
4. Summary Table
Item | You received? | Why or Why Not? |
1099-NEC from One Legal | No | Payments were made via ServeManager Wallet (i.e., Dwolla, a TPSO) and not directly by One Legal. |
1099-K from Dwolla | No | Total payments were under the $5,000 threshold for 2024. |
Need to report income? | Yes | Yes—report using other records (e.g., ServerPay report, wallet transaction history) on schedule C |
Need a 1099 to file | No | No—The IRS does not require a 1099 form to file your taxes. |
5. We’re Here to Help
If you’d like help reconciling your records, we can:
Show you how to export a report from ServeManager showing all payments and totals, OR
Provide you with a summary statement for your tax preparer.