Form 1099-K Tax Reporting Information
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 your taxpayer identification information, your business name, and any other business tax information you provided to Square at any time, directly from your online Square Dashboard.
View Your Form 1099-K
To access your Form 1099-K online:
Log in to your online Square Dashboard, and got to Account & Settings > Business.
If you qualify for a Form 1099-K, you can download a PDF of your Form 1099-K and update your tax information directly from the Tax Forms tab if you need to.
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 a Form 1099-K based on your account activity. Forms for each tax year will be made available on your Square Dashboard by January 31st of the following year. If you don’t qualify for a Form 1099-K, you can still review your yearly sales summary and card processing fees from your online Square Dashboard.
How do I update my account so it’s reported under my business name and EIN?
To receive an updated Form 1099-K, update your business taxpayer information by heading to your Square Dashboard. Edit your information for the current fiscal year and click Save. The Form 1099-K will automatically update. Download your Form 1099-K to confirm your updated information is correct.
Is my Employer Identification Number (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, log in to your online Square Dashboard and confirm your business tax information.
SSN vs. EIN
While all Square customers have to provide a valid Social Security Number (SSN) during sign-up, we also encourage providing your EIN during sign-up. 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.
Learn more about the differences between your SSN and EIN.
How can I apply for an EIN?
You can apply for an EIN from the IRS.
While Square is a credit card processing company, we are not a typical merchant service provider— meaning we don't 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.
In the US, the state where your taxpayer information is associated will determine your qualification for a Form 1099-K. 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.
|New Form 1099-K Qualifications for the 2022 Tax Year: Beginning January 1, 2022, accounts with $600 or more in gross sales from goods or services in the 2022 tax year will qualify for a Form 1099-K and must be reported to the IRS by Square.|
Square may report, solely within its discretion, on amounts below these thresholds to meet reporting requirements for these states:
These reporting thresholds are based on the total gross sales volume processed on all accounts using the same Taxpayer Identification Number (TIN). If you have multiple accounts that use the same TIN, we will total the volume for all accounts to see if you qualify for a Form 1099-K.
The IRS requires Square to report every account that meets the Form 1099-K requirements—including non-profits.
Update Your From 1099-K for a Previous Year
To update your Form 1099-K for a previous year, start by updating your taxpayer information from your online Square Dashboard to make sure your Square business name matches what the IRS has on file.
To update your taxpayer information, make sure to have a copy of an official bank statement with your bank’s letterhead showing transfers from Square to your business. The statement can show any month from the year you’re requesting an updated Form 1099-K and should include your full bank statement
If you're requesting to update Form 1099-Ks for multiple years, make sure to include a bank statement for each year.
If you used multiple bank accounts during a year you want to update, make sure to provide a statement for each bank account that received transfers from Square.
Your bank statement(s) must clearly show:
An official bank letterhead with your bank’s logo.
The bank holder’s name and address. Note: The bank account holder’s name and address need to match the name and information in your Square Dashboard under Taxpayer Information.
The bank account number or the last three digits of the account if you’re using a credit union.
Transfers from Square during the same year as your requested Form 1099-K correction.
Once the above information is accessible, contact Square Support through one of the following methods to submit a Form 1099-K correction.
How are the amounts on the form calculated?
The amount and transaction count on each form are calculated based on your gross sales for the transaction date(s) of those sales. This includes revenue from card payments that were refunded. Gross sales include taxes and tips collected on a sale if they were charged on a card.
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 is because you may have had refunds, chargebacks, or holds, and Square’s 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 online Square Dashboard shows your transactions in your local time, so there may be small differences if you have transactions that occur after either 4:00 p.m. or 5:00 p.m. (depending on daylight saving time) or after 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 use the volume from all accounts to see if you meet these reporting qualifications: more than $20,000 in gross sales and more than 200 transactions. Each Square account will have a separate form you can download and use for your tax reporting. We cannot combine multiple accounts in a single Form 1099-K.
To update the Federal Employer Identification Number (EIN) associated with multiple Square accounts, sign in to each Square account using your email and password to update your taxpayer information.
Tax Reporting with Cash For Business
Cash App for Business accounts that accept over $20,000 and more than 200 payments* per calendar year cumulatively with Square will receive a Form 1099-K.
*If your taxpayer information is associated with Massachusetts, Vermont, Maryland, Washington D.C., or Virginia we are required to issue a Form 1099-K and report to your state when you accept $600 or more. If your taxpayer information is associated with Illinois, we are required to issue a 1099-K and report to your state when you accept more than $1,000 with over 3 transactions. If your taxpayer information is associated with MO, we’ll issue a Form 1099-K if you processed $1,200 or more in a year.
Log in to your Cash App Dashboard to update your EIN or SSN for your business account—so all your 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 payment volume for both will be totaled and reported on each Form 1099-K.
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.
Learn more about your Form 1099-K with Square.