We want to make sure you are prepared for tax time and that you can find everything you need from your Square reports.
This post is a list of frequently asked questions as well as video overview.
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. This year (2020) tax filing deadline has been extended. Visit the IRS website for more details about filing and payment deadlines.
Do I qualify for a 1099-K form?
Square will provide a 1099-K form for you if meet the following criteria:
1. You processed more than $20,000 in gross sales from goods or services in the calendar year AND
2. You completed more than 200 card transactions (debit, credit and tap) in the calendar year.
Note: If you set up your Square account in Massachusetts or Vermont Square is required to issue a 1099-K and report to your state when you process $600 or more in credit card payments. Learn more about this form and requirements on the IRS website.
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 2020.
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.
You can sign in to your online Square Dashboard at squareup.com/login from a web browser. Click Reports > then click Sales Summary > edit the date range > and then scroll down to view the details of your report.
1099-K form and Tax Season FAQs
Here are some frequently asked questions about tax season:
When will my 1099-K form be available? Forms will be available to download from your Square Dashboard by January 31st 2020.
What if I processed a refund, is it included? The amount and transaction count on your form are calculated based on your gross sales on the transaction date of the sales. This includes revenue from card payments that were refunded.
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.
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 is a TIN? A Taxpayer Identification Numbers (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.
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.
What if I need to update a form for a previous year? Visit our Support Center for the steps to update your information and contact our team to update your 1099-K form for a previous year.
What’s a 1099-B form? If you use Cash App for Business or if you sold any Bitcoin through Cash App you’ll be able to download your 1099-B form at https://cash.app/account. Read more on the Cash App Support Center.
Click Reply below to let us know if you have any questions or visit our Support Center for additonal information about Square Tax Reporting!
We can general questions here in the Seller Community. As always, for tax advice, please get in touch with a tax professional.
This material has been prepared for informational purposes only. You should consult with your own tax advisor for tax advice.
My company says I need a 1099 if I make more than $600 in what we call SV im well on my way to getting that goal my question is what exactly do I turn in from square to my tax professional just trying to get a jump on it its our first year making enough to collect taxes
Thanks in advance
Hi there again, @HWPZEBRAHERD 👋 Thanks for reaching out here on the Seller Community to ask your question. 1099 and Tax questions can be tricky, so we are glad you joined us.
I merged your post into an existing thread of Sellers also asking questions in regards to reporting and tax information. This thread also contains an incredibly helpful Best Answer from Helen about 1099 qualifications and best practices. It will walk you through qualifications for 1099-K's as well as offer some next steps for make sure you're all set come tax time.
Let us know if you have any specific questions!
Re: Everything you need to know about 1099-K Tax Forms and Tax Season
My 1099-K shows more revenue than I have collected. Is this because it includes sales tax and if so why is that included as revenue?
Hi there, @AlexBenjamin! Thanks for reaching out with your questions here on the Seller Community 👏 Welcome, welcome!
Your issued 1099-K is going to include your entire gross amount collected by way of Square throughout the year - including your collected Sales Taxes. The IRS requires that we report over all funds processed from your business for the fiscal year.
We suggest you work with your local tax professional on how to best to designate Sales Tax reporting to the IRS from your Tax Forms.
Let me know if you have any lingering questions. We are here to help!
Re: Everything you need to know about 1099-K Tax Forms and Tax Season
Yes, credit card by square $25 k and $10 k, cash total $ 35k and my experience was $40k lost, our business take a way Uber, every taxi medallions owner, we was suffering before coron19, and me 75 years old, supposed retire, but no choose, if I stop working, bank they will take a way my medallion, loosening $50k my down payment, and for 7 years, I pay for the bank, you need to see my return taxi, I am a Steve, thank you
I'm having difficulty understanding the math done between my gross sales and refunds with what is on my 1099-K.
For Example: I looked at May 2019 transactions, and he's a breakdown of what I'm seeing: When I add all my Gross Sales and Refunds, it comes out to $80 LESS than what my 1099-K reports for the month. There's one day where the Net was -$20 due to a refund, and the only way I can make the numbers work is if I add the Gross Sales ($40) to the returns ($60) and subtract the Net Sales (-$20), but isn't that calculating the same figures twice?