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.

[ashc]

Hi @chefjonathans!

It's best to consult a tax professional on this but we don't report to the IRS unless you meet the qualifications for a 1099K form. 

[tkirchberg]

Square keeps telling me that my TIN does not match the IRS's number on file and they are correct,  because the one on the 1099 form is incorrect. Every time I try to correct it,  I get a message saying the # I put in is also not matching. Any ideas on how to correct this? 

Ted @ All Automotive Repair 

[Joe]

Hi there, @tkirchberg 👋 So sorry for the trouble you are having with your TIN.

Would you mind taking a look at this Best Answer from Helen? She was able to offer some troubleshooting to Sellers who were also experiencing this issue.

Let me know if that helps!

[adiguntai]

My 1040 was wrong ,because.I only make 2000.00 .Dollars on my Square charge,My 1040 came back with 5000.00. Dollars Please I need someone to adjust my 1040 Form for me ,Because the 3000.00. Dollars was returned back to Customer .Please and cheek and adjust my 1040 form 

Thank you 

For your understanding on this matter

4 Tees

[JustinC]

Hey there @adiguntai - 

Hopefully I'm understanding, are you referring to the 1099k form you were issued? If so, Square is required to report all annual gross card payment collected, including revenue from card payments that were refunded. 

Check out the top of this thread to learn more about Tax Reporting info. 

[Brad108]

I know about 20,000/200 transactions- question is if I have 2 different accounts because they're are 2 different names and divisions is that 20/200 each for the 1099-K  form? 

[Valentina]

Welcome to the Community, @Brad108! I've merged your post with a relevant thread where we've covered some common 1099-K related questions. @Helen covered this question about 1099-K forms when you have more than one Square account.

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.

[scottlaf]

I am wondering if Square provides either a 1099K or, if not, an end of year total for tax purposes?

[Joe]

Hi there, @scottlaf 👋 Thanks for reaching out to us here on the Seller Community! Happy to have you!

I've merged your post into a great thread here regarding information for your 1099-K! You should be able to find all relevant information and answers to your questions here.

Let me know if you have any further clarifying questions, as well!

[danielworku28]

Year 2018 tax paper

[isabelle]

Hey @danielworku28-

Thank for posting in the Seller Community.

Take a look at this Support Center article that goes over tax reporting with Square. If you were eligible to receive a 1099k in 2018, it would be downloadable here.

I moved your post over to this thread so you could take a look at the best answer, and comments for additional help. 

[Mankeyroy]

Need my 1099 forms

[isabelle]

Hey @Mankeyroy-

Thanks for posting in the Seller Community.

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. 

[Clydes]

The IRS has notified me that my Form 941 wasn't submitted correctly. Who can help me?

[nika]

@Clydes You can reach out to our Payroll team.

[margaretshelley]

Need 1099 forms for 2017, 2018, and 2019 taxes

[ashc]

Hi @margaretshelley,

I moved your post to an existing thread that goes over how to download your 1099K forms if you qualified for them.

They are downloadable from your Dashboard. Follow the instructions in the main post for more details!

[Roysplace]

I am trying to get my 2019 1099 tax info and I can not access it on the dashboard.

Please advise. I have watched the video but it just seems to not be there. I can see my current transactions but can not get the form.

[Joe]

Hi there, @Roysplace 👋 Thanks for reaching out to us here on the Seller Community! Happy to have you join us!

It sounds like you may not be eligible to receive a 1099-K form if it is not visible from your Online Dashboard.

If you meet the requirements to receive a 1099-K form, 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.

If you're sure that you do meet requirements and are still not able to view a 1099, we would recommend reaching out to our Support Team directly for further troubleshooting.

[gervejean]

I would like my 1099 for year 2019

[AmyJ3]

Question on the 1099-K: Is line 1b (Card not present transactions) included in line 1a (Gross amount of payment card/third party network transactions)?