Important Tax Info for Gift Card Redemptions (2026)

General
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In accordance with U.S. Internal Revenue Service (IRS) requirements, ToyChats is required to collect tax information from users who redeem gift cards.

To make this process secure and streamlined, ToyChats uses Avalara (Track1099) to collect and manage tax forms digitally.

How it works

  1. After you submit a gift card redemption request, you will receive an email within 1 to 2 business days asking you to complete the appropriate tax form:
  • W-9 for U.S. persons
  • W-8 for non-U.S. persons
  1. Once we have received and verified your tax form is completed correctly, we will proceed with issuing your redeemed gift card.

:white_check_mark: If you have already submitted a valid W-8 or W-9 to ToyChats previously, you do not need to submit it again.

Who can see your submitted information

Your tax information can only be accessed by ToyChats’ finance administrator, who is also the person responsible for issuing gift cards. No other team members have permission to access your tax information.

Thank you for your understanding and cooperation. :purple_heart:

FAQ

1) Do I still need to submit tax info if I redeem under $600 this year?

In most cases, if your total rewards for the calendar year stay under $600, a 1099-NEC is typically not required.

However, we may still request tax info before issuing gift cards to keep the redemption process compliant and to avoid delays if your annual total later exceeds the reporting threshold.

2) How long does it take to receive the tax form email and get my gift card?

You will receive the tax form email within 1 to 2 business days after submitting your redemption request.

After you submit the form, we will issue your gift card once the form is verified as complete and valid.

3) I already submitted a W-9 or W-8 before. Do I need to submit again?

No. If you have already submitted a valid W-9 or W-8 to ToyChats previously, you do not need to submit it again.

4) What if I am not in the U.S.?

Non-U.S. users should complete the W-8 form (not W-9). The email you receive will guide you to the correct form.

5) Is my tax information safe? Who can access it?

Only ToyChats’ finance administrator (the gift card issuer) can access your tax information. Other team members cannot view or handle your tax info.

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Just for sake of accuracy, in the US, the thresh hold increases to $2000 in 2026 and is then indexed for inflation going forward.

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Just to clarify for accuracy:

For IRS Form 1099-NEC, the reporting threshold is still $600, and there is no IRS-announced change increasing it to $2,000 in 2026.

According to the IRS:

  • You must file Form 1099-NEC for each person you paid $600 or more for services in the course of your trade or business.
  • This $600 threshold has not been indexed for inflation and has not been updated for 2026.

IRS sources:

• IRS Instructions for Forms 1099-MISC and 1099-NEC
https://www.irs.gov/instructions/i1099mec

• IRS FAQ – “Am I required to file a Form 1099 or other information return?”
https://www.irs.gov/businesses/small-businesses-self-employed/am-i-required-to-file-a-form-1099-or-other-information-return

There is currently no IRS guidance or instruction stating that the 1099-NEC threshold will increase to $2,000 in 2026.

The $2,000 figure is often confused with other tax provisions or proposed changes, but it does not apply to 1099-NEC under current IRS rules.

Bottom line:
For 1099-NEC, $600 remains the correct and enforceable threshold, including for future years unless the IRS officially changes it.

In 2025, ToyChats issued a higher-than-usual number of gift cards. Based on guidance from our CPA, we’ve been advised that some process and compliance updates are necessary to make sure everything stays aligned with U.S. regulations.

To avoid any future issues and to ensure that everyone can continue receiving ToyChats gift card rewards without interruptions, we’ve made a few adjustments to our requirements and workflows. These changes are not meant to make things harder — they’re simply here to protect both our reviewers and the ToyChats platform.

We truly appreciate your patience and understanding. Our goal remains the same: to keep ToyChats fair, transparent, and sustainable, so we can keep rewarding the community for the long run.

Thank you for being part of ToyChats :heart:

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4

when you send out a toy to test does the that have to be reported also now? Or is it only on gift cards?

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Only gift cards and other cash-equivalent items are subject to this requirement.