1099-K and Tax Form FAQs

Tax Form Questions

Form 1099-K

What is Form 1099-K?

Form 1099-K is a report of payments you got for goods or services during the year. It reports the gross amount of all reportable payments received through payment settlement entities (PSE). For the 2024 calendar year, TikTok Shop will issue you a 1099-K if your gross payment volume on the platform exceeded $5,000.

Will I receive a Form 1099-K?

If you are a TikTok Shop (U.S.) seller and your gross payment volume over the 2024 calendar year on the platform exceeded $5,000, you will receive a Form 1099-K. TikTok Shop will send copies to you and the IRS by January 31st of the following year. If you did not exceed the $5,000 threshold, you will not receive a 1099-K. If you meet the criteria, you can find your 1099-K in Seller Center > Finances > Tax.

Why do I need a Form 1099-K?

The Internal Revenue Service (IRS) requires U.S. payment processors, including TikTok, Inc., to file and send you a Form 1099-K if the payment processor has processed more than $5,000 of your sales during the calendar year. Your sales on online marketplaces such as TikTok Shop are considered reportable income. For additional information regarding Form 1099-K, please visit the IRS website here.

What is included in Form 1099-K?

The 1099-K form will include your unadjusted gross sales (UGS) on TikTok Shop for the calendar year. It is broken out by month based on when the buyer's payment is processed. Unsuccessful buyer payments are not included in the 1099-K.
UGS = product sales price + shipping fees - any seller provided discounts
It is effectively the total amount your buyers have paid, but is not adjusted by the following:

• Refunds or cancelled orders after payment is made
• Platform discounts
• Shipping subsidies
• Or any other adjustments

How do the 1099-K amounts compare to the Settlement Report?

The 1099-K is not expected to match your actual payments received. The amount reported on the 1099-K for each month is registered immediately after the buyer's payment has been processed. This means that there is a timing difference if you are reconciling against your Settlement Report, which shows when the amounts are settled in your wallet. Typically, the timing gap between the date of buyer's payment with the date of settlement in the merchant's wallet can be as long as a few weeks. Furthermore, your payments are net of expenses, such as refunds, shipping costs, referral fees, creator commissions, chargeback fees, and more, which are not included in unadjusted gross sales (UGS).To understand how your orders contributed to the unadjusted gross sales (UGS) reported on the 1099-K, you can create a "1099-K detailed report". Go to Finance Taxes > 1099-K detailed report > click Generate and then download.

How can I reconcile the amounts reported on Form 1099-K?

The Orders Report can help you review the order level detail reported in your Form 1099-K. Here, you can find details such as the SKU Subtotal Before Discount, SKU Seller Discount, Original Shipping Fee, Shipping Fee Seller Discount, and Paid Time.
Go to Orders > Manager Orders > click Export to download your Orders Report.
Using the Orders Report:

• 1099-K amount = SKU Subtotal Before Discount - SKU Seller Discount + Original Shipping Fee - Shipping Fee Seller Discount
• Only orders with a Paid Time are included in 1099-K
• If there are multiple items in an Order ID, the shipping fee is replicated on each line item, but is only reported in the 1099-K once

If you have questions about what to do with the 1099-K form, we recommend you reach out to your tax advisor or accountant.

Providing your Tax Information

Where can I find my tax information?

For individuals, your social security number (SSN) is required and can be found on your social security card or prior tax forms such as a W2 or 1099-K.For businesses, the EIN can be found on your IRS notice with assigned EIN, or prior tax forms such as a 1099-K.

How is my tax information reviewed?

The tax information provided to complete the tax interview is compared to the information you provided when originally creating the account. Please ensure that the tax informaiton provided matches with the information provided upon onboarding.If the tax information is valid, a W9 is created per IRS requirements. If TikTok is unable to verify your information, you may be asked to provide additional documentation to confirm the accuracy of your tax information (to be eligible to participate in TikTok Shop) such as a document, notice, or letter issued by the IRS stating your organization name and Tax ID.

Why do I need to provide my Taxpayer Identification Number (TIN)?

The IRS requires TikTok to obtain your tax information prior to making any payments to you. Failure to provide required information triggers mandatory withholding at a rate of 24% on such payments (and may make you ineligible to participate in TikTok Shop).

How do I provide my tax information?

Your tax information is furnished by completing a Form W-9. To complete your Form W-9, please go to Account Settling-Tax. You will be directed to a page where you can enter and electronically certify your business tax information.

What tax information do I need to provide?

As a seller of goods or services, you provide the legal name of your business and corresponding TIN. If you are an individual or an entity disregarded for US tax purposes, you provide the name and TIN of the individual owner. You must additionally provide your address and federal tax classification. For additional guidance, refer to the specific instructions for Form W-9.

When must I update my tax information?

You must update your tax information when the information previously provided is no longer correct such as a change in name, change in TIN, or change in status as a U.S. person. Additionally, you must update your tax information if you detect an error in in the information initially provided.

How do I make an update to my tax information?

If you need to make a change to your tax information, please go to Account Settling-Tax. You will be directed to a page to securely enter and electronically certify your corrected information.