How does Square send my 1099-K?

[Community-Team]

How does Square send my 1099-K? Do they mail it? Do I access it digitally? 

[Sean · Accepted solution]

To get going, Square does not provide physical copies of 1099-K forms for those sellers who qualify. You can download your 1099-K directly from the Square Dashboard. 

For most states, we only provide a 1099-K form for sellers who did more than $20,000 sales (excluding cash) AND completed more than 200 transactions in the calendar year.

Square is required to issue a Form 1099-K and report to the state if your taxpayer information is associated with:

• The District of Columbia, Virginia, Maryland, Massachusetts, or Vermont and $600 or more is processed in card payments.
• Illinois and more than $1000 in processed card payments and more than 3 processed transactions.
• Missouri and $1200 or more in processed card payments.

Hope this helps!

[citybeat]

Although you do not provide a 1099k form to your customers that did not have over 20,000 in yearly sales, do you still report the amount to the IRS?

[EJ_]

@citybeat  The IRS only requires that Square report this information for every account that meets the 1099-K thresholds.

[citybeat]

Hi. I'M hearing it's 2,000, not 20,000.

Thanks.

[EJ_]

@citybeat We only provide a 1099-K form for sellers who did more than $20,000 sales (excluding cash) AND completed more than 200 transactions in the calendar year. 

[citybeat]

Thank you.

[VanKalkerFarms]

consult with your tax professional obviously as I am not, but here is my advice.

Square doesn't report it via a 1099k but you have to report it on your income tax.  They are credit card transactions and are easily traceable by the IRS.  Deposits are made directly to your account, so with any audit, they would be found and penalized.  So, yes while Square doesn't report it you need to.

[citybeat]

Yes, I realize that.  It's my responsibility to report all income.  I haven't used Square yet. Just trying to find out how it works. I was surprised by the 20,000 amount.  Other services are telling me they provide a 1099 k at 2,000.  I would like to have a 1099k that shows every dollar I earned, no matter the amount, so that I don't make an error on my taxes.

[VanKalkerFarms]

@citybeat here are the IRS instructions.  page 4 box 1a. is the pertinent information.

https://www.irs.gov/pub/irs-pdf/i1099k.pdf


you wouldn't believe what people try to ask so they can avoid claiming income.

[atlbeerbus]

Does Square send the 1099Ks to the IRS for my business or am I supposed to send them to the RIS on behalf of my Contractors?

[ashc]

Hey @atlbeerbus!

Check out @Sean's answer on the first page about how we send 1099Ks out and when they're reported. We only report them if it's over a certain amount per year.

[FunnyBugBees]

Ok then, riddle me this. I am a sole-proprietor and run an online business so ALL sales are through credit cards or paypal.

What form do i use to report the income then? For instance, in QuickBooks you have to choose from four types of income, they are:

1099-MISC - which i dont get I am a sole-proprietor

Other Income (includes 1099-K, Cash, Checks)

Uncommon income. Includes awards, interest, debt previously deducted

Rebates/Refunds

So, do i use "Other Income" and just put in the total credit card and paypal sales?

[VanKalkerFarms]

your accountant or tax preparer can advise you on how to file your income from credit card sales.  neither Square nor I will advise you on your tax preperation and how it applies in your state.

[LVS]

I believe you answered your own question .... OTHER INCOME (Includes 1099-K, cash, checks).  They are  providing you a 1099-K , so it goes under "Other". Thats what my accountant does.

[calmstudio]

I got an email saying I could find my 1099 on my dashboard but it is not there, only 2019 and 2020 are listed. Can I contact someone?

[VanKalkerFarms]

I don't believe the forms are ready yet.  they usually come out the last week of January.  Mine isn't there yet either but will be soon.

[kinghaddad]

Hi there, I have two companies using the square POS however I only can find the tax form for one of them. How can I find the other one?

[Kassi_]

Congrats on your first Community post, @kinghaddad - 

Welcome and thank you for reaching out for help through this channel. 

Please take a look at the best answer in this thread, it will show you the qualifications needed to receive the 1099 Tax Form. 

If your other business didn't meet those requirements, then a form would not be generated for them. 

Please let me know if you have any other questions. 

[abwt]

Where on the dashboard? please provide the steps. Which icon do i select. Its not where all my other tax information is.

[gooodygumdrops]

I need a copy of my 1099-k