> For the complete documentation index, see [llms.txt](https://support.xplorpay.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://support.xplorpay.com/resources/understanding-your-form-1099-k.md).
# Understanding your Form 1099-K
Learn what Form 1099-K reports, how to access it, and how to review it.
### What Form 1099-K reports
Form 1099-K reports payment card transactions to the IRS. Payment cards include credit, debit, stored-value, and gift cards.
The form reports gross sales for the calendar year. Gross sales do not subtract credits or returns. Sales are reported by transaction date, not settlement date. The form also shows a monthly subtotal.
The acquirer or processor that settles transactions must report them. Xplor Pay may not report American Express or Discover transactions. This applies when you receive statements directly from Discover, Wright Express, or Voyager.
### When you receive your form
Xplor Pay mails Form 1099-K each January. You should receive it by the end of January. It is also available in [Merchant Home](https://merchantportal.xplorpay.net/).
### Use your form for tax preparation
Consult a tax advisor about your income tax return. You may need to report credit and debit card sales as gross sales.
Xplor Pay provides an annual Activity Summary report each February. The report is available in Compass. It includes gross sales, credits, chargebacks, and fees.
Provide your Form 1099-K and Activity Summary report to your tax advisor or accountant.
### Understand the sections
1. **Filer:** Xplor Pay, the credit card processor that files the form with the IRS.
2. **Payee:** Your business’s legal name and taxpayer name. It is associated with your federal taxpayer identification number (TIN).
3. **PSE:** The payment settlement entity. This is the company named in your merchant agreement.
4. **Account number:** Your merchant number, also called a merchant identification number (MID) or Merchant ID. If you have multiple accounts, the form shows the account with the highest volume.
5. **Payee’s TIN:** Your business’s federal tax number. It is an employer identification number (EIN) or Social Security number.
6. **Box 1a:** Gross sales from card types that Xplor Pay settles and deposits. It uses the transaction date. Sales settled directly by American Express or Discover are excluded.
7. **Box 1b:** Gross sales from card-not-present transactions. This includes keyed card numbers.
8. **Box 2:** Your merchant category code (MCC). For multiple MIDs, Xplor Pay uses the MCC with the highest volume.
9. **Box 3:** Your total payment transactions. This amount corresponds to the volume in Box 1a.
10. **Box 4:** Federal income tax withheld, if applicable.
11. **Boxes 5a through 5i:** Gross sales for each month. Their total should match Box 1a.
12. **Boxes 6 through 8:** State withholding details, if applicable.
### Access your form in Merchant Home
{% stepper %}
{% step %}
#### Sign in
Go to [Merchant Home](https://merchantportal.xplorpay.net/). Enter your username and password, then select **Login**.
{% endstep %}
{% step %}
#### Find the merchant account
Enter the business name or Merchant ID in the search box. Select the correct merchant from the list.
If you search by Merchant ID, enter only digits after leading zeros.
{% endstep %}
{% step %}
#### Open tax documents
When the dashboard loads, select **Statements and Tax Forms**. Then select **Tax Documents**.
{% endstep %}
{% step %}
#### Open the form
Select the needed year and tax document. Select the PDF file at the bottom of the screen.
{% endstep %}
{% endstepper %}
### Frequently asked questions
#### Why do my 1099-K sales differ from my monthly statements?
Several factors can cause differences:
* Your form combines accounts that share the same TIN.
* The form reports gross sales. Monthly statements can show gross and net sales.
* The form uses transaction dates. Monthly statements use settlement dates.
* The form can exclude card types settled outside Xplor Pay.
You can export transaction-date data in New Merchant Home to compare with your form.
#### Why does Form 1099-K report gross sales?
The IRS requires Xplor Pay to report gross sales. Your business may claim eligible deductions for credits, chargebacks, and fees on its tax return.
#### Will I receive a form for every merchant account?
The IRS requires one form for each business with a unique federal TIN. A single form includes all accounts that share a TIN.
#### What is the account number on my form?
The account number is your MID or Merchant ID. It also appears on your Xplor Pay statement. If accounts share a TIN, the form shows the MID with the highest sales volume.
#### Which accounts does my form include?
Your form includes all merchant accounts that share your TIN. The Activity Summary report lists each account associated with that TIN.
#### What is a merchant category code?
An MCC is a four-digit code. Card associations use it to classify businesses by their goods and services.
#### How is the MCC selected?
Xplor Pay selects an MCC during account setup. The code represents your business under card association guidelines. For multiple accounts, the form uses the MCC for the highest-volume account.
#### Why did I receive a form after closing my account?
The IRS requires Xplor Pay to report all activity during the calendar year. This applies even if you closed your account that year.
#### How do I correct my TIN?
Xplor Pay uses the legal name and TIN in its records. Update your information in **Merchant Home → Account Settings**. You can also contact Customer Support.
If your IRS information is correct, submit a completed W-9 form. E-mail it to . Xplor Pay updates your tax information and Form 1099-K after verification.
---
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