Reconciling Your Stripe 1099-K in Xola
Learn how to reconcile your 1099-K with Xola reporting by breaking down how transaction activity flows from Stripe through Xola Transactions and ultimately into payouts.
The 1099-K form reports the credit card payment activity processed through your account during the tax year, as required by IRS reporting regulations. The form is generated by your payment processor and reflects all qualifying credit card transactions processed through your account during the reporting period.
When reconciling your records, it is important to compare the 1099-K against the appropriate Xola reports and account for differences in how transaction data is grouped, including timing differences, UTC reporting, and payout scheduling. The Xola Transactions report provide the detailed breakdown needed to understand how the activity reported on your 1099-K flows through to actual transactions and payouts.
For tax reporting purposes, the 1099-K should be used alongside your detailed Xola reporting to ensure an accurate reconciliation of all credit card transaction activity for the year.
User Access: Primary roles have access to Stripe 1099K.
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What's covered in this article:
Understanding the 1099-K form
A 1099-K reports the total gross volume processed through your account during the calendar year before any deductions, including:
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Refunds
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Credit card processing fees
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Booking fees
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Disputes and chargebacks
Stripe, your payment processor automatically generates the 1099-K using credit card transactions processed through your Xola account.
The form is organized by month and reflects all qualifying credit card activity for the year.
Important: The 1099-K only includes credit card transactions. Other payment methods are not included because the IRS defines the 1099-K specifically for card-based payment processing.
Should I Have Received a 1099-K?
You generally receive a 1099-K if your account processed:
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More than $20,000 USD in gross payment volume
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AND more than 200 credit card transactions during the tax year
Requirements may vary depending on IRS regulations and state-specific reporting thresholds.
Reconciling Xola Reporting with Your 1099-K
Reconciling your 1099-K with Xola reporting involves comparing the transactions included on your 1099-K to the transactions recorded in Xola.
Before beginning the reconciliation process, download the following reports from Xola:
Transactions Report
Navigate to Reports > Transactions and export the report for the period you are reconciling.
When exporting the report:
- Include an additional day at the beginning or end of the reporting period to account for UTC reporting.
- Remove transactions that fall outside your local reporting period due to the UTC offset.
- Exclude transactions that do not have a processing fee, such as refunds and gift certificate transactions.
- Verify that the resulting transaction total matches the amount previously reconciled to your 1099-K.
Monthly Reconciliation Considerations
When reconciling an entire month, remember to account for UTC reporting adjustments. Transactions occurring near the beginning or end of the month may need to be included or excluded based on their UTC timestamp.
Once the UTC adjustments have been made, the Transactions Report should reconcile to the 1099-K.
Frequently Asked Questions
Does the 1099-K include all payment types?
No. The 1099-K only includes credit card transactions.
Other payment methods are not included because IRS reporting requirements for the 1099-K apply specifically to card-based payment processing.
Why did I receive a 1099-K?
You generally receive a 1099-K if your account meets both of the following thresholds:
- More than $20,000 USD in credit card payment volume
- More than 200 credit card transactions during the tax year
Thresholds may vary based on IRS or state requirements.
Can I issue refunds for old transactions?
Most payment processors only allow refunds within approximately 120–180 days of the original transaction date.
Why are only credit card transactions included?
The IRS defines the 1099-K specifically for card payment processing. Non-credit-card payment methods are not included on the form.
For more information about IRS 1099-K requirements and reporting guidance, visit: