1. Designlab
  2. Mentors
  3. Compensation

How do mentors get a 1099 form for tax purposes?

Jessica Campbell

If you get paid via Stripe

If we send your mentor payouts via Stripe, they are responsible for issuing a 1099-K to you. Stripe is only required to issue the form when certain payment thresholds are met (we are not aware of any Designlab mentors receiving form 1099-K from Stripe in the past). You can find more information here.

 

There are 3 conditions that need to be met in order to qualify for a 1099K form from Stripe:
  •  The account is based in the United States (owners do not need to be US citizens) or the non-US account is for a US taxpayer AND
  •  More than $20,000 USD in total gross volume AND
  •  More than 200 charges
If a mentor meets all three conditions they need to ask Stripe for the form. If they don't meet all three conditions then they can still export the data from their Stripe account by following these steps:
  1. Log into your Stripe account.
  2. Navigate to your Dashboard Payments: All transactions page. This link filters ‘Charges’ that were ‘Available On’ 2020. For other years make sure to update the ‘Date’ and ‘Transfer date’ filters.
  3. In the upper-right corner of your screen, select Export.
  4. After the download has finished, open the resulting .csv file in your spreadsheet viewer of choice (such as Microsoft Excel, Google Docs, or Apple Numbers).
  5. Exclude any transactions that were not ‘Available On’ during the year you are trying to reconcile. Check the Available On column to identify these transactions.

 

If you get paid via Paypal

If we send your mentor payouts via PayPal, your 1099-K is issued through their portal once you meet a certain threshold. You can find information here on how to determine this.  

If you have any questions regarding reporting your Designlab income for tax purposes, please consult with your tax advisor. Designlab does not provide tax, legal, or accounting advice. This article is meant to be used for informational purposes only.

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