We want to make sure you are prepared for tax season and that you can find everything you need from your Square reports at this busy time of year.
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 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 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’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.
Let us know if you have any questions or visiit our Support Center for additonal information about Square Tax Reporting! We are happy to answer general questions here in the Seller Community. As always, for tax advice, please get in touch with a tax professional.