Where are Square processing fee reports located for Tax Season?

[amazingoutcomes]

The title of this thread has been edited by a Square Moderator from the original: "The 1099 for 2024 only has the gross sales. Where do i get the fees charged amount?"

The 1099 for 2024 only has the gross sales. Where do i get the fees charged amount?

[ryanwanner · Accepted solution]

Hello @amazingoutcomes !

You're right that the 1099 only shows your sales: that's all the IRS cares about on this form: how much money transferred from Square to your account.

To look at your fees, head to Dashboard -> Reports -> Fees. Change the calendar to last year. This will give you a fee breakdown report for your business.

Hope this helps!

[Candlestore]

@amazingoutcomes ;

The other issue is that since Square takes out their Fees Before Depositing the money to you, the 1099 shows your Net deposited after Squares Fees.   So the Square fee is not Paid out of the deposit amount you receive or is Reported as your earnings.  So the Fee is not tax dectible against the 1099 form.   Now if you show your Gross income, and show in your accounting forms the Square Fees, this net amount should Match Squares 1099 form.

Example:

In my Accounting software I showed each Square Transaction

So simplified view of my account Sales Receipt per Square Transaction would look like:

Item Sale.........Units Sold ...... $ Value ........ Sub Total

Candle                4                 $20.99             $83.96

Pa Sales tax 6%                                               $5.04

Gross Subtotal                                               $89.00

Square Fees                                                     -2.33             

Deposit amount to my Bank                         $86.67

Then at the end of the year all the the Deposit Amounts equal what is on my 1099 form from Square not the actual amount in the Subtotal Line.  

So Square is not reporting that they Transferred the $89.00 Gross Subtotal to you but is only reporting the amount after their processing fees, which is the amount Deposited into your account.  Basically since you are not paying for the fee out of the money given to you from Square, you can not deduct that fee.   You should track it though to keep for your records and why you Gross sales to Square do not match Deposits from Square.