Learn about Square Tax Reporting and the 1099-K form, including qualification standards, IRS rules, and how to update the Federal Business Tax ID (EIN) associated with your Square account.
The IRS requires that Payment Settlement Entities, such as Square, report the payment volume received by U.S. account holders. A 1099-K is the information return that is given to the IRS and qualifying customers.
Review this sample 1099-K form.
Do I Qualify for a 1099-K?
All accounts that meet both the following criteria qualify for a 1099-K and must be reported to the IRS:
- More than $20,000 in gross sales from goods or services in the calendar year
- AND more than 200 transactions in the calendar year
These reporting thresholds are based on the aggregate gross sales volume processed on all accounts that use 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 meet threshold. Update the tax information associated with your account.
For every account that meets the 1099-K requirements, including non-profits, the IRS requires that Square report this information.
If you qualify, you can download your 1099-K forms from the Tax Forms tab of your Square Dashboard.
Don’t see a Form 1099-K for the current tax year?
If you did not qualify to receive a 1099-K from Square, you can calculate your year-end sales report and view your fees from your online Square Dashboard and give that information directly to your tax professional.
How do I submit my Form 1099-K?
Square is required by law to file a copy of the form(s) presented on your online Square Dashboard for the applicable tax year. You should seek the advice of a tax professional with regards to questions about how to file your taxes, Square cannot provide tax advice.
Verify or Update Your Tax Reporting Information
To ensure accurate tax reporting for you or your business, and to prevent any possible IRS withholding, it is very important that you update your Square account to match IRS records. You can review or update the taxpayer identification information, your business name, and any other business tax information you provided to Square at any time directly from your Square Dashboard.
Learn how to update your taxpayer identification information.
To access your 1099-K online:
- Log in to the Business page of your online Square Dashboard.
- On the Tax Forms tab, you’ll be able to download a PDF of your 1099-K form and if necessary, update your tax information.
If you do not see a form available for download on the Tax Forms tab, it is most likely because you did not qualify to receive one based on your account activity. Forms for each tax year will be made available on your dashboard by January 31st of the following year. You can also view and download up to three years of forms through your online Square Dashboard.
How do I update my account so it’s reported under my business name and EIN?
To receive an updated 1099-K form, update your business taxpayer information by heading to your Square Dashboard. After editing your information and clicking Save, the 1099-K form should automatically update. You can confirm this by downloading the form available on that page.
Learn more about the process of updating your taxpayer identification information with Square.
Is my EIN currently linked to my Square account?
For security purposes, we do not have access to your taxpayer information. If you are unsure whether you linked your EIN when you created your Square account, confirm your business tax information.
SSN vs. EIN
While all Square customers are required to provide a valid Social Security Number (SSN) during sign-up, providing an Employer Identification Number (EIN) during sign-up is encouraged. By providing an EIN, your account will be identified as a business entity and all tax reporting will be associated with your business name and EIN. Update your business tax information.
Learn more about the differences between your SSN and EIN.
How can I apply for an EIN?
Learn about how to apply for an EIN from the IRS.
Merchant ID Number
While Square is a credit card processing company, we are not a typical merchant service. We do not supply our account holders with individual merchant ID numbers. Even though we don’t assign specific numbers, your business is still designated as a merchant with Square.
How are the amounts on the form calculated?
The amount and transaction count on each form is calculated based on your gross sales on the transaction date of the sales. This includes revenue from card payments that were refunded.
Cash sales are not included in the total we report on the 1099-K form.
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 deposited to your bank.
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 after either 4:00pm or 5:00pm (depending on daylight savings time) and midnight in your local time zone.
What if I have multiple locations?
What if I have multiple accounts?
If you have multiple accounts that use the same EIN or SSN, we will use the volume from all accounts to see if you meet the reporting qualifications of more than $20,000 and more than 200 transactions. Each Square account will have a separate form that you can download and use for your tax reporting. We cannot combine multiple accounts onto a single 1099-K form.
To update the Federal Business Tax ID (EIN) associated with multiple Square accounts, sign into each Square account using your email and password to update your taxpayer information.
How do I receive a corrected form 1099-K for a prior tax year?
Tax Reporting with Cash For Business
Square Cash for Business will only provide a 1099-K form to those who accept at least both $20,000 and 200 payments per calendar year cumulatively with Square.
Log in to your Square Cash Dashboard online to update your EIN or SSN for your business account so that all tax reporting will be associated with the correct information if you qualify.
Note: If you have both Cash for Business and Square Point of Sale accounts associated with your SSN, your total payment volume will be aggregated and reported on each 1099-K form.
For any additional tax information, please reach out to a tax professional or visit the IRS Form 1099-K Payment Card and Third Party Network Transactions site.