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1099-K Tax Forms and Tax Season: Everything you need to know

We want to make sure you are prepared for tax season and that you have everything you need from Square to file your return. Let’s get started.

 

What is a 1099-K form?

 

The IRS requires Payment Settlement Entities, such as Square, to report the payment volume received by U.S. account holders. A 1099-K form is the information return that is given to the IRS and qualifying customers.

 

Do I qualify for a 1099-K form?

 

Square will provide a 1099-K form for you if meet both of the following criteria:

 

  1. You processed more than $20,000 in gross sales from goods or services in the calendar year 

*AND*

  1. You completed more than 200 card transactions (debit, credit and tap) in the calendar year. 

 

Note: Square may report, solely within its discretion, on amounts below these thresholds to meet state and other reporting requirements in: District of Columbia, Illinois, Maryland, Massachusetts, Missouri, Vermont and Virginia. Learn more in our Support Center.

 

How do I download my 1099-K form?

 

If you qualify for a 1099-K form you'll see a link to download your 1099-K form on the Tax Forms tab of your Square Dashboard. Forms will be available by January 31st 2021.

 

Where can I view my fees?

 

If you don't qualify for a 1099-K, you can calculate your year-end sales report (including fee information) from the Sales Summary tab of your Square Dashboard. Your tax professional may need this information to complete your tax forms.

How to view fees.gif

 

1099-K form and Tax Season FAQs

 

When will my 1099-K form be available? Forms will be available to download from your Square Dashboard by January 31st 2021.

 

What if I have multiple Square accounts? Our reporting thresholds of $20,000 and 200 transactions are based on the aggregate gross sales volume processed on all accounts that use the same EIN or SSN. If you have multiple accounts that use the same EIN, we will aggregate volume for all accounts and issue a 1099-K if you meet the thresholds.

 

How do I update my tax reporting information or add an EIN to my account? You can review and update your taxpayer information (legal name and EIN) from your online Square Dashboard — sign in from a web browser at squareup.com/login. Learn how to update your form 1099-K for a prior year.

 

How do I get an EIN? An Employer Identification Number (EIN) is a federal tax identification number used by the IRS to identify your business for tax purposes. You can apply for an EIN using Square’s free EIN assistant.

 

What’s a TIN? A Taxpayer Identification Number (TIN) is an identification number such as an SSN (for individuals) or an EIN (for businesses). These identification numbers are used by the IRS for tax purposes.

 

Corrected forms: Can I receive a blank/0 1099-K form? Square cannot issue a Form 1099-K with a zero dollar amount. A corrected form can be used to inform the IRS that the amount originally reported under the previous TIN should be updated and associated with the new TIN. Square will file the corrected form with the IRS during our next filing cycle, which occurs 3-4 times a year. Contact the IRS to work directly with them to ensure the businesses’ sales are not reported under the previous TIN.

 

Are cash transactions included in the 200 transactions threshold? The 200 transactions threshold is for credit, debit, and tap payments only and does not include other payments like cash, checks or other tender.

 

Additional Resources

 

 

Helen
Seller Community Manager, Square
Find step-by-step help in our Support Center
Message 1 of 20
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1 Best Answer
Admin

Best Answer

Learn more about Form 1099-K Tax Reporting Information or watch the video below to get ready for tax season with Square.

 

Helen
Seller Community Manager, Square
Find step-by-step help in our Support Center

View Best Answer >

Message 2 of 20
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19 REPLIES 19
Admin

Best Answer

Learn more about Form 1099-K Tax Reporting Information or watch the video below to get ready for tax season with Square.

 

Helen
Seller Community Manager, Square
Find step-by-step help in our Support Center

View Best Answer >

Message 2 of 20
26,309 Views

I met the requirements but Square says I didn't and did not issue 1099. What should I do?

($39,000 IN SALES AND 274 transactions)

Message 3 of 20
21,097 Views

Hey @SpectrumCE and @hudsonbabylon!

 

The amount and transaction count on each form are calculated based on your gross sales on the transaction date of the sales. This includes revenue from card payments that were refunded. Please note that gross sales include taxes and tips collected on a sale if they are charged on the card.

 

If you're still confused by your eligibility or totals, please remember that cash sales are not included in the total we report on the Form 1099-K. Because of this requirement, the amount shown on this form will be different from the amount settled into your bank account. This is because you may have had refunds, chargebacks or holds, and Square’s fees were deducted before funds were transferred to your bank.

 

If you were not eligible or didn't receive a 1099k from Square - we suggest reaching out to a tax professional. 

 

 

Isabelle
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
Message 4 of 20
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Is it possible to get an official report from Square? When I print the report page, just number show up - no store name or source of report?

Message 5 of 20
20,984 Views

Also I thought I met criteria for number of transaction according to requirement

Message 6 of 20
20,983 Views

How can I get a report from Square that has my store name and Square on it. I can only print a page with numbers no ide tidying source

Message 7 of 20
20,857 Views

My 1099-K is made out to my personal name and SSN not my business Name and EIN. How do I get this corrected? Everything in square is correct with my business information. 

Message 8 of 20
22,480 Views
Square Community Moderator

Hi there, @BeyondBarriers 👋 Thanks for reaching out to us here on the Seller Community!

 

Here is a helpful guide to walk you through what to do if you are needing a 1099-K edited. If you have trouble, feel free to reach out to our Support Team directly at any time!

Joe
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
Message 9 of 20
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Should my Square 1099-K also reflect refunded transactions?  If so the 1099-K I received does not. 

Message 10 of 20
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Square Community Moderator

Hey @hudsonbabylon! We do not have a verification letter for tax reporting, but you can work with a tax professional to get this information. If you received a 1099-k, it will be under Account & Settings > Tax Forms on your Square Dashboard, but you will have to meet the credit card sales requirements as well as the credit card transaction requirement. If you only met one, we would not have issued a 1099-K and you will need to work with a tax professional again to obtain one. 

AshleyK
Community Moderator, Square
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Message 11 of 20
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@JoeBanzai I would recommend clearing your cache/history or trying from another browser!

AshleyK
Community Moderator, Square
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Message 12 of 20
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The amount shown on line 1a is what was actually paid to me after fees taken out by square,  Correct????

Message 13 of 20
4,545 Views

Hi @Azotos and welcome to the Community.

 

I moved your post to the existing thread that's pinned to our homepage on 1099K reporting.

 

Everything you need to know should be here- but if not you may need to consult a tax professional since we are not tax professionals here in the Community.

Ashley C
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
Message 14 of 20
4,500 Views

I qualify for a 1099 but every time I try to go into the tax forms section it always gives me 

 

Oh no, something went wrong.

It looks like we are experiencing some problems on our end.

 

I'm pretty sure I had this problem last year also but was able to get the form on my phone and emailed it to myself.  I don't see the tax form in the business section on my phone this year.  

Anybody know a workaround that will let me get the form?

Message 15 of 20
4,441 Views

Hi, Square sent me a 1099-K, saying I met the $600 criteria, but I didn't meet that criteria for last year and less than that is showing on the 1099-K created by Square. Wondering why I received one when it doesn't seem like I meet the criteria.

Message 16 of 20
4,018 Views

Hi @kellyjo! The reporting threshold for 1099s changed from some states, so that's likely what you're experiencing. 

Square is required to issue a Form 1099-K and report to the state if your taxpayer information is associated with:

  • The District of ColumbiaVirginiaMarylandMassachusetts, or Vermont and $600 or more is processed in card payments.
  • Illinois and more than $1000 in processed card payments and more than 3 processed transactions.
  • Missouri and $1200 or more in processed card payments.
AshleyK
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
Message 17 of 20
4,003 Views

Thanks for the info. I'm in MD, so the threshold is $600, but I didn't meet that?

Message 18 of 20
4,002 Views

I’m trying to print my 1099-k for 2020. Where do I find it on my square? 

Message 19 of 20
3,928 Views

@TabathaE 

It is available in your online dashboard under Account & Settings ----> Business ----> Tax Forms.

 

Hope this helps.

 

Donnie

Message 20 of 20
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