Square Tax Reporting and Form 1099-K Overview
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 Payment Settlement Entities, such as Square, to 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?
In the US, the state your taxpayer information is associated with will determine your qualification for a 1099-K.
Generally, accounts meeting both of the following criteria qualify for a 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. For example, if your tax reporting information is associated with Massachusetts or Vermont, we are required to issue a Form 1099-K and report to your state when you process $600 or more 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 how to update the Taxpayer Identification Number associated with your account.
For every account that meets the 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.
Where can I locate my 1099-K?
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 Form 1099-K from Square, you can calculate your year-end sales report and view your fees from your online Square Dashboard. You can even export your reports and sales information to give to your accountant or tax professional.
Where can I view my fees?
To view the fees you paid for credit card processing with Square in a given time period:
- Head to your online Square Dashboard > Reports.
- Under Sales Summary, click the date-selector tool to view a specific timeframe. Note: Click the middle of the date-selector to see a full calendar view.
- You’ll see Fees listed near the bottom of the report.
To save your report as a CSV or spreadsheet, click Export on the top right.
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.
Read more about making sure that your taxpayer information is correct and up to date.
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