Squarespace 1099: How to Get It & What You Need to Know

Squarespace 1099

If you use Squarespace to sell products, services, or digital content, you may need to report your earnings for tax purposes. The IRS requires businesses and payment processors to issue 1099 forms to eligible sellers. 

This guide will walk you through how to get your 1099 form from Squarespace, who qualifies for one, and how to report your income.

What Is a 1099 Form?

A 1099 form is an IRS document that reports income received outside of traditional employment. There are different types of 1099 forms, but in the case of Squarespace transactions, the most relevant form is the 1099-K. This form is issued by third-party payment processors, such as Stripe or PayPal, which facilitate transactions on your Squarespace website.

Who Qualifies for a 1099-K from Squarespace?

You will receive a 1099-K if:

• Your total sales exceed $20,000 in gross payments, AND
• You have processed more than 200 transactions in a calendar year.

These thresholds apply under federal law, though some states have lower requirements. For example, Massachusetts and Vermont require a 1099-K for sales exceeding $600. Always check your state’s regulations to ensure compliance.

How to Get Your 1099 from Squarespace

Squarespace itself does not issue 1099 forms. Instead, your payment processor—Stripe or PayPal—handles this process. Here’s how you can access your 1099-K:

For Stripe Users:

1. Log in to your Stripe Dashboard.
2. Navigate to the Tax Forms section.
3. If you qualify, your 1099-K will be available for download.
4. Ensure your tax information is updated in Stripe to avoid errors.

For PayPal Users:

1. Log in to your PayPal Business account.
2. Go to Tax Documents under the Reports section.
3. If eligible, your 1099-K form will be listed for download.
4. Verify that your PayPal account details match your tax records.

What to Do If You Don’t Receive a 1099-K

If you do not meet the federal or state reporting thresholds, you may not receive a 1099-K. However, you are still responsible for reporting your income. Here’s what you should do:

• Keep track of all Squarespace sales, expenses, and fees.
• Download transaction reports from Squarespace, Stripe, or PayPal.
• Use accounting software or consult a tax professional to file your return correctly.

Filing Taxes with a Squarespace 1099-K

Once you receive your 1099-K, you must report it on your tax return. Here’s how:

1. Use Schedule C (Form 1040) if you’re a sole proprietor or single-member LLC.
2. Deduct eligible business expenses such as hosting fees, advertising, and transaction fees.
3. If you earned more than $400, you might owe self-employment tax.

Final Thoughts

Understanding the Squarespace 1099-K process is crucial for managing your tax obligations. Even if you don’t receive a 1099-K, you must report all income earned through Squarespace. Keep accurate records, stay informed on tax regulations, and consult a tax professional if needed. Proper tax planning ensures compliance and prevents potential IRS issues.