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.
Note: While they will remain the same for transactions received during 2021, 1099-K thresholds will be changing for transactions received in January 2022 and later. For state specific information, see the FAQ at the bottom.
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:
- You processed more than $20,000 in gross sales from goods or services in the calendar year.
*AND*
- 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 2022.
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.
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 2022.
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.
States with Unique Reporting Thresholds
Square may report, solely within its discretion, on amounts below these thresholds to meet state and other reporting requirements:
District of Columbia
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
Illinois
Square is required to issue a Form 1099-K and report to the state when more than $1000 is processed in card payments and more than 3 transactions.
Maryland
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
Massachusetts
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
Missouri
Square is required to issue a Form 1099-K and report to the state when $1200 or more is processed in card payments.
Vermont
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
Virginia
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
These reporting thresholds are based on the aggregate gross sales volume processed on all accounts using the same Tax Identification Number (TIN). If you have multiple accounts that use the same TIN, we will aggregate the volume for all accounts to see if you qualify for a Form 1099-K.
Additional Resources
- Taxes & 1099-K
- Square Tax Reporting and Form 1099-K Overview
- Form 1099-K Tax Reporting Information
- Update Form 1099-K
- Sales Tax Q&A: How can we improve sales tax settings? (2021)
- Live Q&A: Ask Financial Experts anything about how to prepare your business for tax season! (2021)
- Solved: Live Q&A: Ask us anything about TurboTax! (2020)
