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.
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
- 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 2021.
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 2021.
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.
- Taxes & 1099-K
- 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)
- Square Tax Reporting and Form 1099-K Overview
- Form 1099-K Tax Reporting Information
- Update Form 1099-K
Seller Community Manager, Square
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The amount and transaction count on each form are calculated based on your gross sales on the transaction date of the sales. This includes revenue from card payments that were refunded. Please note that gross sales include taxes and tips collected on a sale if they are charged on the card.
If you're still confused by your eligibility or totals, please remember that cash sales are not included in the total we report on the Form 1099-K. 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.
If you were not eligible or didn't receive a 1099k from Square - we suggest reaching out to a tax professional.
Seller Community Manager, Square
Is it possible to get an official report from Square? When I print the report page, just number show up - no store name or source of report?
My 1099-K is made out to my personal name and SSN not my business Name and EIN. How do I get this corrected? Everything in square is correct with my business information.
Hi there, @BeyondBarriers 👋 Thanks for reaching out to us here on the Seller Community!
Hey @hudsonbabylon! We do not have a verification letter for tax reporting, but you can work with a tax professional to get this information. If you received a 1099-k, it will be under Account & Settings > Tax Forms on your Square Dashboard, but you will have to meet the credit card sales requirements as well as the credit card transaction requirement. If you only met one, we would not have issued a 1099-K and you will need to work with a tax professional again to obtain one.
Hi @Azotos and welcome to the Community.
I moved your post to the existing thread that's pinned to our homepage on 1099K reporting.
Everything you need to know should be here- but if not you may need to consult a tax professional since we are not tax professionals here in the Community.
I qualify for a 1099 but every time I try to go into the tax forms section it always gives me
It looks like we are experiencing some problems on our end.
I'm pretty sure I had this problem last year also but was able to get the form on my phone and emailed it to myself. I don't see the tax form in the business section on my phone this year.
Anybody know a workaround that will let me get the form?
Hi, Square sent me a 1099-K, saying I met the $600 criteria, but I didn't meet that criteria for last year and less than that is showing on the 1099-K created by Square. Wondering why I received one when it doesn't seem like I meet the criteria.
Hi @kellyjo! The reporting threshold for 1099s changed from some states, so that's likely what you're experiencing.
Square is required to issue a Form 1099-K and report to the state if your taxpayer information is associated with:
- The District of Columbia, Virginia, Maryland, Massachusetts, or Vermont and $600 or more is processed in card payments.
- Illinois and more than $1000 in processed card payments and more than 3 processed transactions.
- Missouri and $1200 or more in processed card payments.
Can someone please explain to me how they added up the amount monthly for 1099. Ive tried it every which way and still get a different number than what Square provided on 1099.