Everything You Need to Know about 1099-K Tax Forms and Tax Season

[Helen]

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.

[Joe]

Hi there, @ClippingAlong17 👋 Thanks for reaching out and asking your question here on the Seller Community! Happy to have you in the fold.

I've gone ahead and moved your post over to one of our more popular tax threads full of Sellers who are asking Similar questions regarding tax reporting. You should be able to find most answers to your questions there!

One clarifying point - normal Square Point of Sale accounts do not withhold any funds for tax purposes. Your gross sales will be reported to the IRS; you can see your total sales amount either from your Sales Summary within the Online Dashboard, or in your 1099-K (if you qualify).

Let me know if you have any questions!

[Veronawalksalon]

How do I receive a 1099K hard copy from Square.  

[ashc]

Hi @Veronawalksalon! Welcome to the Community.

I moved your post to an existing thread about the 1099K forms and how they're downloaded from the online Dashboard.

We don't send paper copies of this but you can download them from the online Dashboard to print if need be!

It's under > Tax Forms in Account & Settings.

[Veronawalksalon]

I don’t have a printer.  I need a paper copy to send in my taxes

[obrien247]

I'm so confused. I have been trying to catch up on my taxes and just got my 1099-k form and the months on the form does not match up when I look in the taxes section. There it'll say one thing then on the 1099 it's a lower number. So which is it? 

[nika]

@Veronawalksalon I'm very sorry, but we don't send hard copies of 1099K's. If you don't have a printer, you may want to try a local library or print shop once you save it from your Dashboard.

@obrien247 That seems strange. You may want to consult with a tax professional when it comes to your numbers. They should be able to work it out for you.

[obrien247]

[Joe]

Hi again, @obrien247 - thanks for the reply.

I'm not sure I fully understand your question in the subject line of your last post. I appreciate you including that screen shot, though! That email is a notification from us that you qualify for a 1099-K and it is currently available for download on your Online Dashboard. 

Let me know if you have any questions! 

[obrien247]

Great! So the monthly numbers on here is that the same as what I was to report to IRS as taxable income was my original question. 

[Joe]

@obrien247 - got it! Thanks for clarifying that. Yes, the 1099-K should be a true reflection of your gross sales for the fiscal year. 

[Mcstudiomassage]

I’m having the same issue. My spreadsheet which I exported from square the “transaction csv” doesn’t match my 1099-k

[Joe]

Hi there, @Mcstudiomassage 👋 so sorry for the confusion here! We would love to help you troubleshoot.

Is the transaction CSV report you are exporting set to the date/time range for all of 2019? If not, this could cause some discrepancies between your Sales Reports and your 1099-K.

I will keep an eye out for your response! 

[cartee]

Square printed old payee addresses on 1099-Ks generated for all of my locations. The addresses for these locations are (and have been) correct under Account & Settings > Business > Locations. Exactly where do I go to update the addresses appearing on the tax forms?

[Kassi_]

Hey there @cartee - 

You were close! Go to the Tax Forms portion under Business to update it. 

Also, I moved your post over to a board with more information on this topic. 

There are helpful videos and Support Articles for working with your 1099-K

[bluejacket]

Can anyone help with this?

I am trying to figure out if my end of the year report from my SQUARE dashboard:

(1) includes the sales received through our online store, and

(2) is reflected in our 1099-K document (since the payments were made via credit card).

[JustinC]

Hey @bluejacket 🤗 Good question!

You're right on target - online sales are included in your 1099k totals since they are considered card sales. 

Everything you need to know about 1099k forms live here on this thread. Feel free to take a look! 

[Pru4winds]

I have payments out of gross sales to consignors. 2019 showed $11,000 (+-)

of my sales paid to consignors. How is this accounted for in my Square total sales of $25,000(+-)? Do I need to file a 1099K in this situation?

[Valentina]

Hi there @Pru4winds! 👋 I've moved your post here where you should find the answers to all of your 1099-K questions.

If you've processed over $20,000 in credit card sales and over 200 transactions, you'll automatically receive a 1099-K that will be available in your Square Dashboard. If you do not see a 1099-K here, that means you did not qualify this year.

[What]

The total on my 1099K is different than the total when I run a report....why would that be?

[AshleyK]

Hey! Great question. There are a few reasons this could be: 

Square reports your annual gross card payment amount collected, including revenue from card payments that were refunded. Cash and Other Tender payments are not included in the total we report on the 1099-K form. For more information on what’s included in the gross processing volume, please visit the IRS website.

Refund Reporting
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.

Transaction Timing
The transaction date is the date in our system that the transaction took place, which is based on a standardized time known as UTC. Your online dashboard shows your transactions in your local time, so there may be small variances if you have transactions that occur between 5:00 pm and midnight in your local time zone.

[chefjonathans]

If i dont qualify for a 1099 form. Do I have to report my sales/transactions ? Does the IRS still receive the information from Square?