Understanding Tax Reporting Requirements with SquadTrip
As a SquadTrip organizer, it’s crucial to understand the tax reporting requirements that apply to you, particularly regarding the 1099-K form. This form is issued based on specific criteria and is essential for compliance with IRS regulations for individuals and businesses in the United States.
When collecting funds through SquadTrip, we must adhere to the reporting standards set by the IRS. Stripe, our official payment processing partner, is responsible for issuing all tax documents.
Please Note: SquadTrip does not provide tax advice to organizers.
When is a 1099-K Form Issued?
Stripe will issue a 1099-K form if you meet both of the following criteria:
You collect more than 200 transactions in a year through SquadTrip.
You collect over $20,000 in payments in a year through SquadTrip.
If you do not meet these criteria, Stripe will not issue a 1099-K form to the IRS on your behalf.
What Information Does Stripe Report?
Stripe is required to report the total gross payments you receive through the platform, including card transactions, before any refunds, disputes, or adjustments.
For more detailed information about the 1099-K form and the reporting process, you can find helpful resources here. Additionally, check out this short video that explains the 1099-K form in a simple way:
Please Note: This policy applies only to individuals and businesses registered within the United States.
Frequently Asked Questions
What is a 1099-K form?
The 1099-K form is a statement summarizing your account’s total payment activity. You will receive this form, along with the IRS and certain U.S. states, if you collected more than $20,000 and had over 200 transactions via SquadTrip in 2023. If you’ve connected your own Stripe account for payments, you will receive your 1099-K form directly from Stripe.
When can I expect my 1099-K tax form?
If you meet the reporting thresholds mentioned above, you will receive your 1099-K form in January 2024. It will be mailed to your registered address or sent electronically to your preferred email address.