Turno does not hold any payment information, so we do not provide tax documents. However, if your cleaner hits a certain threshold, our payments processor will send them a 1099 form. 🔔
What is the IRS's position on 1099 forms? 🗒️
According to the IRS Instructions for Form 1099-MISC, "Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC."
How does my cleaner go about receiving a 1099? 🗒️
Turno ensures the security of user data by not retaining any payment information within its system, as we are not a platform specialized in payment processing. Consequently, Turno does not generate tax documents for its users.
Our payments processor will issue Form 1099-K to your contractor as required. Therefore, you do not need to send Form 1099-MISC.
Depending on the type of account your cleaner has with our payments processor, they should receive a 1099-K at the beginning of the year.
If I have more questions, what should I do? 🗒️
For further questions, we advise reaching out to your cleaner and suggesting they log in to their payment account and contact their support directly, and /or consulting a tax specialist.
We also recommend consulting a tax expert if you need additional information beyond what our payments processor can provide. ⚠️