Manage your Form 1099-K
About Form 1099-K
The IRS requires Payment Settlement Entities, such as Square, to report the gross payment volume processed by U.S. account holders. A Form 1099-K is the information return that is given to the IRS and qualifying customers.
In the United States, 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.
There has been some confusion in recent years about the reporting thresholds:
Tax year 2023: The IRS announced a new $600 threshold for Form 1099-K reporting, but this rule was never implemented.
Tax year 2024: The IRS lowered the reporting threshold to $5,000, with no minimum number of transactions required.
For 2025 and beyond, in most states, accounts meeting 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
Square may report, solely within its discretion, on amounts below these thresholds to meet state and other reporting requirements.
Square is required to issue a Form 1099-K and report to these states when more than $1,000 is processed in card payments and more than 3 transactions:
Illinois
Square is required to issue a Form 1099-K and report to these states when $1,200 or more is processed in card payments:
Missouri
Square is required to issue a Form 1099-K and report to these states when $600 or more is processed in card payments:
District of Columbia
Maryland
Massachusetts
Vermont
Virginia
These reporting thresholds are based on the aggregate gross sales volume processed on all accounts using the same Tax Identification Number (TIN). A TIN can be the business Employer Identification Number (EIN), Social Security Number (SSN) or Individual Tax identification Number (ITIN). 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.
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 income from whatever source derived an individual or entity has received throughout the calendar year.
Before you begin
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 your taxpayer identification information, your business name, and any other business tax information you provided to Square at any time from your Square Dashboard.
If you received a Form 1099-K for an account you did not create, possibly due to identity theft, please contact Square Support for assistance.
Understand how amounts on Form 1099-K are calculated
Form 1099-K reports your gross payment amount (Box 1a) and the number of reportable payment transactions for the calendar year. These figures are calculated based on the transaction dates of your sales and reflect the total dollar value of reportable card payments processed during that period.
Gross payment amounts generally include:
Credit and debit card payments
Gift card payments (if applicable)
Cash App Pay transactions (if applicable)
Taxes and tips collected on card transactions
Revenue from card payments that were later refunded
Box 1a reflects gross sales before adjustments, so it is not reduced for:
Processing fees
Refunds or chargebacks
Credits or discounts
Shipping
Other adjustments
As a result, the amount reported on Form 1099-K may be higher than your taxable income, since some included amounts (such as taxes, tips, or refunded transactions) may not be income you ultimately keep. For more information about Form 1099-K and how it is calculated, visit the IRS website.
Cash sales are not included in the total we report on the Form 1099-K — so, the amount shown on the form may be different from the amount settled in your bank account. This difference is because you may have had refunds, chargebacks, or holds, and your Square fees were deducted before funds were transferred 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 Coordinated Universal Time (UTC). Your Square Dashboard shows your transactions in your local time, so there may be small differences if you have transactions that occur after either 4 PM or 5 PM (depending on daylight saving time) or after midnight in your local time zone.
Reconcile your Form 1099-K
You can use the Payment Methods report in your Square Dashboard to verify the total amount reported on your Form 1099-K.
Sign into your Square Dashboard and go to Reports > Settings > Reporting timeframes.
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Click Add and configure your reporting hours to Europe/London UTC+00:00, then click Save.
If reporting hours are not set to UTC+00:00 (12:00 AM – 12:00 AM), your totals may not match your Form 1099-K due to time zone differences.
Once your reporting hours are configured, go to Reports > Payments > Payment methods.
Use the custom date selector tool to adjust the date range of your report to define the full calendar year of your Form 1099-K.
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Select the relevant payment method filters and the relevant timeframe.
Do not include physical cash payments. Physical cash is not reported on Form 1099-K.
Review the total under Payment amount. This total should align with the gross amount reported on your Form 1099-K.
Download Form 1099-K
You can download and make Form 1099-K corrections through your Square Dashboard. If you do not see a form available for download on the Tax Forms tab, you most likely did not qualify to receive a Form 1099-K based on your account activity. Forms for each tax year are made available on your Square Dashboard by January 31 of the following year, or the next business day if January 31 falls on a Saturday, Sunday, or holiday. If you don’t qualify for a Form 1099-K, you can still review your yearly sales summary and card processing fees from your Square Dashboard.
Sign in to your Square Dashboard and select Account & Settings.
Click Tax forms.
Correct Form 1099-K for a previous year
If you need to submit a Form 1099-K correction request, you must provide a bank statement. If you are requesting to update multiple Form 1099-Ks, make sure to include a bank statement for each correlating year.
Your bank statement(s) must clearly show:
Official bank letterhead with your bank’s logo
A full bank statement
The bank holder’s name and address. The bank account holder’s name and address need to match the information in your Square Dashboard under Taxpayer Information for the updated Form 1099-K.
The bank account number or the last 3 digits of the account if you’re using a credit union
Transfers from Square in the same year as your requested Form 1099-K correction
Any month from the year you’re requesting an updated Form 1099-K
You can submit a Form 1099-K correction through your Square Dashboard.
Sign in to your Square Dashboard and select Account & Settings > Tax forms.
Select Request a Form 1099-K correction.
Select the year, location, and reason for the correction request, then select Next Step.
Update your tax information as needed, then select Next Step.
Upload a copy of an official bank statement in PDF format by clicking + Upload document under the respective year, then select Submit Request to finish.
Form 1099-K received in error
If you received a Form 1099-K from Block, Inc. but have never had a Square account, you may be the victim of identity theft. Please contact Square Support.
If your information was used to create a Square account without your authorization, we recommend visiting IdentityTheft.gov for more information and guidance on how to handle identity theft.