All About 1099-K Forms
1099-K Forms are issued by Stripe.
What is a 1099-K form and how do you know if you are getting one?
The 1099-K form is an informational document required by the United States' IRS for Stripe accounts that meet specific criteria, such as being based in the U.S. and having $20,000 USD in total gross volume and 200 transactions in the previous calendar year. The form summarizes the sales activity of an account and is provided to both the account holder and the IRS. Stripe issues 1099-K forms to all eligible U.S.-based users who accept payments, regardless of their business type or activity.
Every year, the United States’ IRS and certain states requires that Stripe provide a form called a 1099-K for each Stripe account that meets all of the following criteria in the previous calendar year:
- Account is based in the United States (owners do not need to be US citizens) or the non-US account is for a US taxpayer AND
- $20,000 USD in gross transactions and 200 transactions for the calendar year.
OR
- Your state has different filing requirements. View the full list of state filing thresholds in this table.
The 1099-K is a purely informational form that summarizes the sales activity of your account and is designed to assist you in reporting your taxes. It is provided to you and the IRS, as well as some US states.
For more help understanding your 1099-K, go to IRS.gov . You can also download a blank example of the 1099-K form here .
Information included on a 1099-K
| Label | Box Number | Description |
|---|---|---|
| Filer’s name, address, and telephone number | Contact information for BloomNation | |
| Payee’s name, address, and telephone number | This is the contact information for your business or organization as it was provided to Stripe. If your address information needs to be updated and: - your 1099-K tax form has not been generated yet, please do so before December 31st from your billing information via Dashboard > Finances > Payment Info > Edit Payment Info | |
| PSE’S name and telephone number | (Blank) | |
| Account number | Stripe’s identification with the US government | |
| Payee’s taxpayer identification number | This is either your Employer Identification Number (EIN) or Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) as it was provided to Stripe. For your protection, the form that we send to you may show only the last four digits. However, the copies that are sent to the IRS and state tax boards include your complete identification number. If your information needs to be updated and: - your 1099-K tax form has not been generated yet, please do so from your account Tax Details settings. - your 1099-K tax form has been generated, please do so from your Dashboard > Finances > Payment Info > Edit Payment Info | |
| Gross amount of payment card/third party network transactions | 1a | The total gross volume of charges that you’ve made with Stripe in the calendar year |
| Card Not Present transactions | 1b | The total gross volume of charges that were made without the card present at the time of the transaction. |
| Merchant category code | 2 | The merchant category code for your business or organization |
| Number of payment transactions | 3 | The number of charges that you’ve made with Stripe in the calendar year |
| Federal income tax withheld | 4 | Backup withholding from your Stripe payments. |
| 5a-5l | The total gross volume of charges that you’ve made with Stripe for each month of the calendar year | |
| State | 6 | The state in which your income tax has been withheld |
| State identification number | 7 | Your identification number that is used for your state income tax withholding |
| State income tax withheld | 8 | State and local income tax withheld from the payments |
When 1099-K Forms are issued
If your business qualifies for a 1099-K, your 1099-K for the previous calendar year will be available to download from the Documents section of the Dashboard prior to January 31. We will also notify the account admins via email when the form is available.
“Total Gross Volume” on 1099-K Form
“Total gross volume” is a calculation of the total of all charges you processed through Stripe for the year, including:
- Stripe processing and conversion fees
- Shipping fees
- Taxes
- Refunded charges
- All adjustments
These additional fees, refunds, and adjustments are not deducted from your total charges when calculating your gross volume and reporting to the IRS.
If you processed LESS THAN $20,000 in gross volume and still received a 1099-K Form
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 or state processing threshold. If you received a 1099-K and didn't expect to, it might be because:
- You have two or more accounts with the same TIN; one meets the IRS threshold and one does not. Each will receive a 1099-K.
- You have two or more 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.
- You have met your state's filing thresholds; filing thresholds for some states might differ from federal requirements. View the full list of state filing thresholds in this table .
Tax details included on your 1099-K Form are not valid
- If your 1099-K includes incorrect tax details, you can update these details through Stripe.
- If you need to split the volume of your already generated 1099-K form, you will need to Contact Stripe Support.
- For guidelines by business type, we recommend going over the tax ID verification guidelines support article.
Additional Information for Non Profits and Donations
Stripe's obligations are to issue 1099-K forms to all eligible US-based users who accept payments, independent of their business type or activity. Even for tax-exempt activities, which may potentially include the acceptance of donations, Stripe is obligated to issue a 1099-K form. The 1099-K is for informational purposes only. We recommend consulting a tax advisor to learn more about this form and how you should use it.
Useful links for sole proprietors
Below you can find further information regarding what to consider when receiving your 1099-K if you are a sole prop. We recommend talking with your tax advisors when preparing your tax forms, but here are some links that you might find useful:
To access Stripe's full educational documentation on 1099-K forms, view the page here.