Form 1099-K Qualifications
| In March 2021, Congress modified the requirements for reporting transactions by lowering the minimum reporting threshold. However, the IRS has delayed the implementation of the Form 1099-K lower threshold for 2023 transactions. To learn more, visit the IRS website. |
Learn about taxpayer information, qualifying and viewing your Form 1099-K, and general tax reporting procedures with Square.
In the US, the state where your taxpayer information is associated will determine your qualification for a Form 1099-K. The thresholds for Form 1099-K qualification can vary from state to state. Make sure to double check your state’s thresholds.
In most states, accounts meeting both of the following criteria qualify for a Form 1099-K and must be reported to the IRS by Square:
More than $20,000 in gross sales from goods or services in the calendar year
AND more than 200 transactions in the calendar year
| Tax Year | Year Form Available | Federal Reporting Threshold |
|---|---|---|
| 2023 | 2024 | More than $20,000 gross sales from goods or services AND more than 200 transactions in the calendar year. |
Square may report, solely within its discretion, on amounts below these thresholds to meet state and other reporting requirements:
District of Columbia
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
Illinois
Square is required to issue a Form 1099-K and report to the state when more than $1,000 is processed in card payments and more than 3 transactions.
Maryland
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
Massachusetts
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
Missouri
Square is required to issue a Form 1099-K and report to the state when $1,200 or more is processed in card payments.
Vermont
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
Virginia
Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments.
These reporting thresholds are based on the aggregate gross sales volume processed on all accounts using the same Tax Identification Number (TIN). If you have multiple accounts that use the same TIN, we will aggregate the volume for all accounts to see if you qualify for a Form 1099-K.
Learn more about updating your Taxpayer Identification Number.
For every account that meets the Form 1099-K requirements, including non-profits, the IRS requires Square to report this information. According to the IRS, gross income is defined as all facets of income an individual has received throughout the calendar year.