Thank you for reaching out to AndDone. AndDone, LLC is a payment processing company. The merchant acquirer, Adyen, indicated as the Filer on the 1099-K you received, must report the proceeds of payment card and third-party network transfers made to you on Form 1099-K under Internal Revenue Code section 6050W. 

However, that does not mean you must report the payments as income. If the Form 1099-K is related to your business, see Pub. 334 for more information. The 1099K includes the gross amount of all payment transactions processed by AndDone via our acquiring partner, Adyen. Please consult a tax professional to determine what amounts should be reported to the IRS as taxable income. 

What is a 1099-K form used for?

If you receive more than the threshold in reportable payments for goods and/or services through a third-party payment network, your payments must be reported on Form 1099-K by the company processing the payments. Those payments can include income as a result of:

• Business
• Self Employed or sole proprietor  
• Real Estate Rentals
• Hobby Sales
• Personal Item Rentals or Sales

However, just because you’ve received payments through a third-party network that meet the minimum payment or transaction thresholds doesn’t necessarily mean you need to count these payments as taxable income.

The 1099-K form provides a record of gross reportable payment transactions provided by a payment card or third-party payment network and is used in the following ways:

• To alert the IRS and state taxing authorities of possible reportable income
• To help individuals and businesses reconcile payments processed with their records