Who receives a 1099K tax form?
1099-K forms will only be sent to Sellers that have $20K in sales AND have received at least 200 orders in the previous calendar year.
Box 1 of the 1099 form is the gross amount of the total reportable merchant card/third party network payment transactions for the calendar year. Gross amount means the total dollar amount of total reportable payment transactions without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts.
The number on the 1099-K is inclusive of any and all activity that was processed by Sears on your behalf. It does not include any adjustments for returns, cancellations or deductions.
Please see the link below for more information on the 1099 form and the IRS stipulations regarding the form and its contents:
Who do I contact if I have questions about the information on the 1099K tax form?
For further clarifications or inquiries, please email AcctPayable1099Inquiry@searshc.com
1) Sign into the Seller Portal and download the Purchase Order Report for last year.
a) Browse to Seller Tools > Reports
b) From the Report Type drop-down, select “Purchase Order Report”.
c) Remove the dates from Expected Ship By Date
d) Add the PO Start Date “01/01/xxxx” (xxxx being last year)
e) Add the PO End Date “12/31/xxxx”
f) Click “Download Report
2) In PO report, you’ll need to do a few calculations.
3) Calculate your Order Count for last year
a) Remove all the duplicate orders using the Excel (see the Microsoft site for more on how to do this).
b) Count the exact number of orders available in column A (Customer Order Confirmation Number).
c) If 200 or more orders, continue to the next step.
d) If 199 or less, we will not issue you a 1099-K for that calendar year.
4) Calculate the total sales for the calendar year
a) Convert your columns to numbers.
b) Sum up the columns AI(Order Total Sell price), AK(Total shipping handling) and AM(Sales tax) for calculating the total sum of sales done in the calendar year. Remember, this is after removing the duplicates.
c) If your total sales are $20,000 or more, then you should receive a 1099-K form from us.
d) If your total sales are 19,999.99 or less, then we will not issue you a 1099-K for that calendar year.
If you feel that you should have received a 1099-K tax form but have not, please verify that the information on your W-9 form in the seller portal is accurate. Once you have confirmed that the information is correct, or if you have changed your information, please contact AcctPayable1099Inquiry@searshc.com.
In the event of a 1099-K being returned to us as having an invalid postal address, we will notify sellers and request that an address is updated. If you haven’t heard from us yet, please follow the below steps to update your address and contact us to receive a form at the new address.
Where do I find the W-9 tax form in the seller portal?
The primary account user will need to log in to the portal using the primary email address and password. The primary user will need to access the Account Settings tab by clicking on the drop-down arrow in the upper right hand of the screen next to their name. Secondary users will not have access to the Account Settings tab should they attempt to make these changes. Once the Account Settings tab has been activated, clicking on the Business Info section of the drop-down will take you to the page that has the W-9 form.
The W9 form is located in the first section of this page. The information displayed is where your 1099K tax form would have been sent. If this information is not correct, please edit the information and provide us with the proper information.
Once you have confirmed that the information is correct, or if you have changed your information, please contact AcctPayable1099Inquiry@searshc.com.