Will Apartments.com report the payments I receive to the IRS? Do I get a 1099-K?
A 1099-K Form specifically relates to payments processed through an online third-party payment facilitator (like Apartments.com). These forms are required to be issued to any entity who qualifies, regardless of if they're an LLC, a corporation, or any other type of entity.
Essentially, the 1099-K Form is an informational (also known as supplemental) return. You should use this in conjunction with your other tax records to determine your correct tax obligation.
When does Apartments.com report to the IRS?
Note: On November 21, 2023, the IRS announced a delay in the new $600 Form 1099-K reporting threshold for third-party settlement organizations for calendar year 2023. As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023.
You can read more about this announcement here:
Individuals or business taxable entities that collect:
- Over $600 in a calendar year are required by the IRS to receive a 1099-K form for tax purposes.
Some states have different reporting thresholds than the federal government. The primary address associated with your account owner information will determine your eligibility for these state thresholds. If your property income is over the listed reporting threshold, Apartments.com is required to file a Form 1099-K with the IRS. For more information on these different thresholds, refer to the table below:
|District of Columbia
|$1,000 and 4 transactions
What information is required?
We'll ask that you specify the taxable entities that are associated with the bank accounts on your Apartments.com account. A taxable entity is the legal owner of the receiving bank account.
We'll ask that you enter your full name, date of birth, current address, and a Tax ID Number Type such as a Social Security Number.
Note: An individual account is your personal bank account. This is also the type of account you will choose if you own a single member LLC or you're managing multiple payments on behalf of another individual's personal account.
We'll ask that you enter the business's name, address, and an Employer Identification Number.
Note: A company account is associated with a company you own or work for.
What payments does the 1099-K include?
The 1099-K form isn't necessarily an income report, rather something we have to issue as the third-party processor for the payments. We are required to report all payments received through Apartments.com including rent payments, bills, and move-in costs.
How will I know if I'm meeting the criteria?
If your payment volume is on track to surpass the threshold set by the IRS, we'll notify you via email and ask that you add your tax information to your account.
What will happen if I don't provide tax information for my receiving account(s)?
Unfortunately, your payments will be suspended until we receive the requested basic taxable entity information for your bank account. Your payments will be re-enabled once the information is entered on your Apartments.com account!
For more detailed information on 1099-K Forms, check out this article from the IRS.
Need help with Apartments.com Payments? Email us at firstname.lastname@example.org.