Stripe 1099-K
If you use Stripe to process payments, tax season can bring questions about your 1099-K form. Understanding how to obtain and use this document correctly is essential for accurate tax filing and IRS compliance. Here’s everything you need to know about the Stripe 1099-K.
What Is a 1099-K?
The 1099-K is an IRS tax form that reports payment transactions processed through third-party networks. Unlike the 1099-NEC, which reports direct payments from companies, the 1099-K is issued when payments are processed through third-party platforms like Stripe.
For Stripe users, this means that if your transactions meet the reporting threshold, Stripe will issue a 1099-K to both you and the IRS.
Who Receives a 1099-K from Stripe?
You will receive a 1099-K from Stripe if:
- Your gross payments exceed $20,000 AND
- You have more than 200 transactions in a calendar year.
However, starting in 2024 (for tax year 2023), the IRS is lowering the reporting threshold to $600 with no transaction limit. This means that more Stripe users will receive a 1099-K moving forward.
How to Get Your 1099-K from Stripe
Stripe typically issues 1099 forms by January 31st each year. Here’s how you can access your 1099-K:
- Check Your Email – Stripe will send a notification if your 1099-K is available, with a link to download it.
- Log in to Stripe Dashboard – You can access your tax documents by navigating to Settings > Tax Documents.
- Verify Your Payout Provider – If you process payments through a platform that uses Stripe (such as Shopify, DoorDash, or Lyft), you may receive your 1099-K from that platform instead.
- Request a Copy – If you haven’t received it by early February, contact Stripe Support.
How to Use Your 1099-K for Taxes
Your 1099-K reports gross sales, meaning it includes all payments received before deductions like Stripe fees, refunds, and expenses. When filing taxes:
- Report your total income on Schedule C (Form 1040).
- Deduct expenses such as Stripe processing fees, business expenses, marketing costs, and software subscriptions.
- Consider estimated tax payments if you owe self-employment taxes.
What If You Don’t Receive a 1099-K?
If you earned less than the threshold, you won’t receive a 1099-K, but you are still required to report your earnings. Use Stripe’s transaction reports, bank statements, and financial summaries to file your taxes accurately.
Final Thoughts
If you use Stripe for payments, understanding how to obtain and use your 1099-K is crucial for a smooth tax filing process. Keep detailed records of your transactions and expenses throughout the year to ensure accuracy. If you’re uncertain about your tax obligations, consult a tax professional for guidance.