If you accept credit card payments through the Online Payments feature, when tax time comes, you may receive a 1099-K form.
Below, you can find important information about the 1099-K form:
- What is a 1099-K form?
- Where do I find my 1099-K form?
- What information is included?
- States with lower threshold requirements
- Does my practice qualify for a 1099-K?
What is a 1099-K form?
The 1099-K is an informational form that summarizes the sales activity of your account, which is designed to assist you in reporting your taxes. Every year, the United States IRS requires that Stripe, our payment processor, provide a 1099-K for each account that meets all of the following criteria in the previous calendar year:
- Account bank account is based in the United States
- More than $20,000 USD in total gross volume
- More than 200 charges
Where do I find my 1099-K form?
Stripe will mail your 1099-K to the business address defined in your Online Payments profile. They will be postmarked by January 31, 2021.
Note: Delivery times may be delayed due to limited transportation availability as a result of the ongoing COVID-19 pandemic.
What information is included?
The document includes a variety of important information about your practice and income over the tax year, including but not limited to:
- Your practice contact information
- The EIN or SSN used for your Stripe account
- The number of charges that you’ve made with Stripe in the calendar year
- Any state or federal tax you’ve withheld through Stripe
States with lower threshold requirements
Maryland, Massachusetts, Mississippi, Virginia, and Vermont require 1099-Ks to be filed for each unique tax identification number with at least $600 USD in gross volume.
Missouri requires 1099-Ks to be filed for each unique tax identification number with at least $1,200 USD in gross volume.
Illinois requires 1099-Ks to be filled for each unique tax identification number with:
- More than $1,000 USD in total gross volume
- More than 3 charges
Does my practice qualify for a 1099-K?
For most accounts, the 1099-K is automatically generated only if your practice ran 200 charges or $20,000 in the last calendar year, but there are possible exceptions to this rule. Stripe provides a 1099-K form for each unique tax identification number (TIN), such as a Social Security Number (SSN) or Employer Identification Number (EIN), that meets the IRS processing threshold. So, it is possible that you may have an account that does not meet the threshold, but they may provide you with the form.
Some possible scenarios are:
- You have two accounts with the same TIN; one meets the IRS threshold and one does not. Each will receive a 1099-K.
- You have two accounts with the same TIN; neither are over the IRS threshold individually but, when combined, the threshold is met. Each will receive a 1099-K.
- Your business is based in Illinois, Maryland, Massachusetts, Mississippi, Missouri, Virginia, or Vermont.
For more information on your Stripe 1099-K, you can reference this guide from Stripe: 1099-K forms issued by Stripe.