GlassPass Tax Guide for Sellers

Overview of Taxes for Marketplaces

As a marketplace, GlassPass is required to adhere to specific regulations for facilitating sales. GlassPass uses Dots to manage payouts, tax obligations, and KYC/AML requirements for Sellers. Dots securely encrypts all sensitive financial and personal data using advanced 256-bit encryption, following the best practices and standards set by the financial industry. 

Sellers may receive a Form 1099-K from GlassPass/Dots, depending on the totals of their sales and transactions. This document is to help you comply with your tax obligations. To prepare for this, Dots will require you to enter your tax information once you surpass a $600 threshold of sales within a calendar year. However, this does not mean you are guaranteed to receive a 1099-K. 

Form 1099-K is an IRS form for taxpayers to report applicable payment transactions received within a calendar year. Online marketplaces like GlassPass are required to issue a 1099-K to sellers in the USA who've received income from online sales over the minimum threshold set by the IRS. We'll provide you with the Form 1099-K by January 31 each year if you've received payments above the minimum IRS reporting thresholds in the previous calendar year.

IRS Tax Thresholds for Reporting

Sellers who received a gross amount of over $5,000 from sales on GlassPass in the 2024 tax year will receive a 1099-K. Sellers under this threshold will not receive a 1099-K even if tax information was submitted. 

Click here for changes to the IRS minimum reporting threshold in 2024

The Form 1099-K will show payments received since GlassPass started managing your payments, and includes the gross amount and number of payment transactions, your name, address, and 9-digit Tax ID. This information will also be reported to the IRS and the correct state tax authority, where applicable.

How & When to Verify your Tax ID

When you reach a threshold of $600 in payouts, you will automatically be prompted to provide your Tax ID to receive your next payout via Dots. You only need to provide your Tax ID once, if you’ve received over $600 from GlassPass in the 2025 calendar year. At the end of the year, GlassPass will verify your Tax ID. If your details can't be verified, you'll need to provide a Form W-9. If this is the case, we'll let you know what you need to do.

TIP: When filing your tax return with the IRS, please ensure that your first and last name saved to your GlassPass account is the same name associated with your Tax ID. If you’re a business, please enter the legal business name.

Form 1099-K and multiple GlassPass accounts

Only one phone number & identity can be connected to a GlassPass account. However, if you do have multiple GlassPass accounts associated with the same Tax ID, your thresholds are calculated by combining all payouts from every account. If your combined sales exceed the above thresholds, you'll receive one Form 1099-K for the combined total of each account, even if one or more of the individual accounts do not exceed the IRS reporting thresholds. If you have multiple accounts with different Tax IDs, you will receive a separate Form 1099-K for each account’s combined sales that exceed the thresholds.

What's included in Form 1099-K?

As Form 1099-K is an IRS information return, it includes the gross amount of all reportable payment transactions within a calendar year, based on when funds settle to GlassPass, not necessarily when funds are received by sellers. This amount does not include any adjustments (for example: credits, discounts, fees, refunds, or any other adjustable amounts). This means that the gross amount on your Form 1099-K may not be the final reportable amount on your tax return. You should consult your tax advisor to determine how best to use the information on your Form 1099-K when filing your personal and/or business income tax return.

If there's an issue with any transaction on your Form 1099-K, you can contact us with the transaction number and any relevant information about the transaction. Additionally, Form 1099-K does not include the sales tax because it is automatically collected and remitted by GlassPass.

1099-K detailed report

To help reconcile the transactions included on your Form 1099-K, you can request a 1099-K detailed report that provides a detailed breakdown of all unadjusted gross payment transactions on your 1099-K form.

To request your 1099-K detailed report from GlassPass, email us at support@glasspass.com. Once your report is ready, we’ll notify you by email. If you have specific questions about reconciling the amounts on your Form 1099-K, we recommend you speak with a tax professional.

For more information, email any questions to support@glasspass.com