Information for your Taxes
Healthie makes it easy to access end-of-year tax information required when completing your business taxes.
1099-K Form Details
If you accept credit card payments through Healthie, when tax time comes, you may receive a 1099-K form.
The 1099-K is an informational form that summarizes the sales activity of your account, which is designed to assist you in reporting your taxes. Every year, the United States IRS requires that Stripe, our payment processor, provide a 1099-K for each account that meets all of the following criteria in the previous calendar year:
- Account bank account is based in the United States and
- More than $20,000 USD in total gross volume and
- More than 200 charges
For those who require a 1099-K (processed more than $20,000 AND had more than 200 transactions), Healthie will automatically mail a 1099-K and e-file it with the IRS. These are charges made in Healthie via our payment processor. Your 1099 via Healthie will not include CMS 1500 claims created/submitted, as well as payments / checks that you received from clients outside of the platform.
The 1099-K includes a variety of important information about your practice and income over the tax year, including:
- Your practice contact information
- The EIN or SSN used for your Stripe account
- The number of charges that you’ve made with Stripe in the calendar year
- Any state or federal tax you’ve withheld through Stripe (Learn more about Sales Tax and Healthie)
To learn more about your 1099-K, visit the IRS' website: Understanding Your Form 1099-K. You can also download a blank example of the 1099-K form here.
If you have had a chance of address or change of business structure in a calendar year, please e-mail firstname.lastname@example.org, and we will help you with modifications to your 1099, as we have updates from Stripe, our payment processor.
Does my practice qualify for a 1099-K?
For most providers, the 1099-K is automatically generated only if your practice ran 200 charges or $20,000 in the last calendar year, but there are possible exceptions to this rule. Stripe provides a 1099-K form for each unique tax identification number (TIN), such as a Social Security Number (SSN) or Employer Identification Number (EIN), that meets the IRS processing threshold. So, it is possible that you may have an account that does not meet the threshold, but they may provide you with the form.
Some possible scenarios are:
- You have two accounts with the same TIN; one meets the IRS threshold and one does not. Each will receive a 1099-K.
- You have two accounts with the same TIN; neither are over the IRS threshold individually but, when combined, the threshold is met. Each will receive a 1099-K.
- Your business is based in Illinois, Maryland, Massachusetts, Mississippi, Missouri, Virginia, or Vermont.
For more information on your Stripe 1099-K, you can reference this guide from Stripe: 1099-K forms issued by Stripe.
Other Financial Reporting for Taxes
If you don't meet the $20K + 200 transactions level, you can run the Payments Report (the report can be generated for the entire year) - which will provide you with the financial information needed for your business taxes.
An accountant can further assist you in how to report your income.
Is Healthie Tax Deductible?
Healthie is considered an acceptable business expense, and therefore is tax deductible.
You can classify Healthie as a software expense, and include your total amount spent on your Healthie subscription when completing your business taxes.