All Alignerrs are engaged as 1099 independent contractors. The tax forms you receive depend on the payment method used to issue your funds.
If you were paid through Deel, Alignerr will issue a Form 1099-NEC, which will be sent securely by Deel. This form reports the total amount paid to a contractor during the prior calendar year (January 1–December 31) and will be issued by the end of January of the following year.
Alignerr will only issue a 1099-NEC to contractors who received payments through Deel. A 1099-NEC will not be issued for payments made via PayPal.
If you were paid through PayPal, PayPal may issue a Form 1099-K. This form is issued by PayPal—not Alignerr—and reports the total gross payment volume processed through your PayPal account, rather than income from a specific company. As a result, if you received payments from multiple platforms (for example, Alignerr and another AI company) through PayPal, those amounts may appear combined on a single 1099-K rather than separated by employer. Additional details on PayPal tax forms and reporting rules will be provided in a separate document.
Alignerr is not responsible for how individuals file or report their taxes, and we cannot answer individual tax questions
Deel’s official FAQ on their website:
“Deel collects a Form W-9 from the contractor during the contract signing process. This form contains the information required to file 1099s.
Deel clients with US entities can file the income of their US contractors with the IRS using the 1099-NEC form, as well as provide their US contractors with their copy of the 1099-NEC.”
Form W-9, "Request for Taxpayer Identification Number and Certification," is an IRS form that individuals and entities (like independent contractors) provide to a payer (a business or person paying them) to give their correct name, address, and Taxpayer Identification Number (TIN).
“If you are a contractor outside of the US but have contracts with US-based clients, you will first need to confirm that you are not a US resident. We will generate a W-8BEN for you, which states that you are not a US citizen and will not pay US taxes.
We do not generate summary reports of earnings to non-US contractors. But we do show the total amount in their Taxes icon next to their previously filled W-8BEN form. This will be displayed in USD.”
Form W-8BEN is an IRS form used by non-US individuals to declare they're not American taxpayers.
PayPal’s official FAQ from their website:
“You’ll get a 1099-K if you receive more than $20,000 and 200 transactions for goods and services in a calendar year.”
Additionally, PayPal and Venmo will issue and file Form 1099-K for any customer who was subject to backup withholding during 2025, regardless of total payments for the year. In the case where an individual state has a lower threshold, PayPal and Venmo will report accordingly.
If you live in the following US states, you’re subject to a lower reporting threshold:
Vermont, Massachusetts, Virginia, Maryland: $600 USD in gross payment volume from sales of goods or services in a single calendar year, regardless of the number of transactions.
Illinois: over $1,000 USD in gross payment volume from sales of goods or services in a single calendar year and four or more separate transactions.
The Form 1099-K that you receive is based on your primary address on the last day of the previous tax year. If you changed your primary address to one of these states after that date, your account activity will be captured in Form 1099-K reporting for the following tax year.”
Additionally, please note this information directly from the IRS website:
“Whether or not you receive a Form 1099-K, you must still report any income on your tax return. This includes payments for any goods you sell or services you provide.”
We do not use Stripe or Wise for U.S.-based users, so no 1099 forms will be issued through those platforms.
If you have further questions, feel free to reach out to our Support Team at support@alignerr.com.
Please note, that Alignerr Support cannot provide any tax-related advice, and as a contractor, you are solely responsible for reporting and filing your taxes.