US tax reporting for Connect platforms
Stripe Connect allows platforms to provide a seamless, end-to-end payment service for their connected accounts. This service may come with certain responsibilities, including information reporting.
On December 23rd, the IRS announced that the 1099-K filing threshold will remain at 20,000 USD and 200 transactions for tax year 2022. 1099-K forms in your Dashboard will be updated automatically by January 3, 2023.
If you work for a platform that pays you via Stripe and want to learn about your 1099 forms and how to get them, see 1099 tax forms on the Stripe Support site.
Stripe issues 1099-K forms for your Standard accounts that meet specific criteria. For your Express or Custom connected accounts, consider issuing a Form 1099 to report income and payment transactions. There are several types of 1099 forms.
Stripe recommends that you consult a tax advisor to determine your tax filing and reporting requirements.
1099-NEC
Use the 1099-NEC form to report non-employee compensation.
The account must meet all of the following criteria in the previous calendar year:
- Based in the US or a US taxpayer
- 600 USD or more in payments
1099-MISC
Use the 1099-MISC form to report other forms of payments made in the course of your business.
The account must meet all of the following criteria in the previous calendar year:
- Based in the US or a US taxpayer
- 600 USD or more in payments or 10 USD in royalties
1099-K
Use the 1099-K form to report payment transactions.
The account must meet all of the following criteria in the previous calendar year:
- Based in the US or a US taxpayer
- More than 20,000 USD in gross volume
- More than 200 transactions
Looking for help calculating sales tax, VAT, or GST? Check out Stripe Tax.