Payments made to teachers for referrals or minutes watched in their classes are considered income and as such need to be reported.
Since payments to teachers for 2021 and earlier were handled directly through PayPal, we recommend logging into PayPal to retrieve your 1099:
- Log in to your PayPal account and click History.
- Then, select Tax Documents from the dropdown menu.
PayPal issues 1099s by January 31st of each year. If there is no 1099 available in your PayPal account, that means you did not reach the earnings threshold that requires PayPal to provide you with a 1099.
Teachers Based Outside of the U.S.
Most teachers will receive an electronic version of your 1042-S for any teacher earnings for the 2021 tax year. We are using a trusted external vendor called Track1099 to deliver the form to you by email — you must consent to receive the electronic version of the form per IRS rules.
This video explains how the electronic version of the form will be sent to you via Track1099.
If you did not provide a TIN (tax identification number) when you registered with Tipalti you will receive the 1042-S by regular mail. We strongly recommend you ensure your TIN is included in your Tipalti registration to prevent potential delays or issues with regular mail.
Tax Forms for Upcoming Years
For the 2022 tax year, regardless if you are based in the U.S. or outside of it, you will receive an electronic version of either your 1099 or 1042-S through Track1099.