How Do I Update My Tax Information Within Hemlane?

Tanner C.
  • Updated

Hemlane makes it easy to create and update your tax information. Our team will then issue a 1099-K form for you and your company or companies, as long as your account meets the IRS requirements.

 

When Does Hemlane Issue a 1099-K?

Hemlane issues a 1099-K only when both of the following are true for a single bank account during the tax year:

  1. At least 200 qualifying transactions were processed
  2. Gross payment volume reached at least $20,000

The IRS applies these requirements at the bank account level. If a bank account does not meet both thresholds, Hemlane does not issue a 1099-K for that account.

 

Using Taxpayer Identities for Multiple Companies

A taxpayer identity represents the legal person or entity that owns a bank account in your Hemlane account. This can be an individual using a Social Security number or a business entity using an Employer Identification Number. Taxpayer identities allow Hemlane to:

  1. Match each bank account to the correct legal taxpayer
  2. Issue a 1099-K form under the right name and tax identification number
  3. Separate reporting when you use different legal entities for different properties

To set up a taxpayer identity, you will need the following:

  • The name of the individual or business
  • Their SSN, EIN, or TIN
  • Their current mailing address
  • The bank accounts associated with that individual or business

 

How to Update Your Tax Information and Set Up Multiple Taxpayer Identities

Step 1: Hover over your name in the upper right-hand corner and select Banks and Cards from the dropdown menu.      

Step 2: Select "To manage your taxpayer identities, click here".      

Step 3: Click the +Add Taxpayer Identity button.

Step 4: Enter the taxpayer’s information, then choose which bank accounts belong to this taxpayer. Each bank account can have only one taxpayer. Repeat this for as many taxpayer identities as you need.

Tip: Double check your TIN or EIN type, TIN or EIN number, and associated bank accounts for accuracy.

Step 5: Save your details. Any bank accounts you assigned will disappear from the Unassigned Bank Accounts list.

If you need to make a correction, you can edit or delete a taxpayer identity. Any bank accounts linked to it will return to the Unassigned Bank Accounts list so you can reassign them.

 

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