Square 1099 Tax Form: Filing Requirements and Steps

Why Is the 1099 Tax Form Important?

🌟 KEY TAKEAWAYS

Square will submit your 1099-K form directly to the IRS at the end of the tax season if you earned over $20,000 and had more than 200 transactions.

As a business owner, it’s important to monitor and track everything from gross income to your sales summary.

If you want to access your 1099-K form, you can log in to your Square Dashboard. 

Everything you need for your tax reporting will be included in the Dashboard. 

If you have trouble finding it, you can contact the Square support team for assistance.

There is a lot to balance when it comes to filing your taxes, including the 1099 Tax form you received from Square at the end of the tax year. The form includes gross payments, relevant taxpayer information, and gross sales from goods. It's equally important to understand for both small businesses and independent contractors. 

Your Square 1099-K details the annual business income you received from Square. The 1099-K is a form used to track self-employed people’s earnings from credit cards and outside online applications like Square. Each freelancer and business owner who uses a payment processor’s platform to conduct business transactions will receive a Form 1099-K from the company if they earn more than $20,000 and have more than 200 transactions in 2025.

If you are an independent contractor, you are probably also familiar with Form 1099-NEC and Form 1099-MISC. The 1099-NEC is a form used to report your self-employment income to the Internal Revenue Service (IRS). Depending on who sends the form to the IRS, either a company you were working for as a contractor or a third-party payment network like Square, reports the income you earned on different 1099 forms.

Which form you will receive depends on how you were paid for your services or goods. Here are the two differences: 

• The gross income you earn through payments with the help of third-party companies that pay with debit or credit cards, payment apps and platforms, and other credit card processors is reported on Form 1099-K.

• The income you earn for services provided as an independent contractor (non-employee compensation) that is paid directly to you through electronic fund transfers, checks, cash, or direct deposits is reported on Form 1099-NEC.

What happens if you also receive checks from customers in addition to payments made through Square? In that case, you would receive both 1099 forms and would report both types of earnings on your federal income tax return.

The differences in the forms may seem confusing, but the good news is that we created this article to cover everything you need to know when filing your tax return. Keep reading to learn all about Square 1099 tax form requirements and the steps for reporting.

The 1099 Tax form is important because it lets the IRS know how much money you earned during the year. It also lets you know what amounts to report on your tax return. For the 2025 tax year, Square must send Form 1099-K to anyone who used its platform to receive over $20,000 in gross payments and has conducted over 200 transactions.

The IRS will also receive a copy of the form. This change was enacted in July 2025 through the "Big Beautiful Bill." This bill restates the previous larger reporting thresholds for 2025 and beyond. If you still need to file your 2024 taxes, the threshold to receive a 1099-K form is more than $5,000 in gross payments. 

Regardless of the limits, you must still report your income on your tax return even if you have not received a 1099-K form. Are you still unsure about your Square earnings amount? Your Square Dashboard allows you to view all the information you need. From there, you can download your 2025 year-end sales report if you processed less than $20,000 in gross payments, had less than 200 transactions, and did not receive a 1099-K form.

Your gross sales for the transaction date(s) of those sales are used to determine the sum and the number of transactions on each form. This includes earnings from refunded credit card purchases. If taxes and tips were applied to a purchase made with a credit card, the gross sales also include those amounts. 

The amount shown on the form may not match the amount that has been settled in your bank account. This is because cash sales are not included in the total reported on Form 1099-K. Also, the difference might be because you have received refunds, chargebacks, or holds, and Square’s fees were deducted before the money was transferred to your bank.

The transaction date is the date the transaction was recorded in the system and is based on Coordinated Universal Time (UTC). If you have transactions that happen after 4:00 p.m. or 5:00 p.m. (depending on daylight saving time) or after midnight in your local time zone, there may be slight differences on your online Square Dashboard because it displays your transactions in your local time.

How to file your Square 1099-K form

The good news is that filing your Square 1099-K form is straightforward and easy. On the one hand, Square will submit one copy of the form directly to the IRS on your behalf if you earn over $20,000 and have over 200 transactions in a calendar year. 

On the other hand, you will also receive a copy of the 1099-K form from Square so that you have the relevant information you need to file your income taxes. The first step you should take is to determine your total gross income and the number of transactions you had during the year.

Next, you can make a list of all your eligible write-offs, including Square fees. Some other common write-offs include: 

Now that you have that information in place, you can begin to fill out Schedule C Form 1040. This form helps you determine your taxable self-employment income by subtracting your write-offs from your total gross income. The net income you calculate will also be shown on tax form 1040. Depending on what your paycheck withholdings were, if you have a W-2 job, or what your quarterly estimated tax payments were, you will go through the process of figuring out how much money you need to set aside for paying your tax liability or what your refund will be.

Based on the calculations, as well as your estimated tax liability for the next year, you'll be able to figure out what your estimated tax payments should be for the next year. If you want an easy-to-use option for all your accounting needs – including tax information – FreshBooks allows you to easily track expenses, understand tax requirements, and reconcile your Square payments when needed.

Also Read: How to File 1099.

Square 1099-K form requirements

It is crucial that you update your Square account to correspond with IRS records. This helps ensure accurate tax reporting for you or your company and avoid potential IRS penalties.

You can review or update your taxpayer identification information, business name, and any other business tax information you have given to Square on your online Square Dashboard.

If you happen to file your taxes using your legal business name or your EIN (Employer Identification Number), it’s important to confirm that your Square account has been updated with both of them to ensure everything is as accurate as possible.  

If not, your name and Social Identity Number will be displayed by default on your tax forms. This, in turn, may cause delayed tax return processing and longer waiting times to receive your refund if you’re getting one

How to get your 1099-K form from Square

Many companies mail you your 1099-K form. However, in many cases, Square makes it easy for you to download the form from your online Dashboard. This simplifies things since you can quickly access it when you need it, and you don’t have to worry about it getting lost in the mail.

Once you are logged in to your Square Dashboard, simply click on Accounts & Settings. From here, you just need to select “Business” and then choose “Tax Forms” from the dropdown menu that’s available. You should be able to see your 1099-K form once you’re inside that section of the Dashboard. 

The forms are meant to be available by January 31. However, you can contact Square directly to have them send it to you if you can’t find it or if it hasn’t been uploaded to your Dashboard.

FAQs about the Square 1099-K tax form

Does Square send you a 1099-K form?

Square will issue a 1099-K form to you if you qualify. You can access it by logging into your Square Dashboard and downloading it for your records.

Where do I find my 1099-K on Square?

Log in to your Square Dashboard and go to Accounts and Settings. Click on “Business” and then select “Tax Forms” from the dropdown menu. You should now be able to find your 1099-K form.

Does Square send 1099-K forms to contractors? 

At the end of the year, Square’s online payroll service automatically generates and electronically files Forms 1099-NEC for each of your contractors. By going to Tax Forms in the Payroll section of your Dashboard, you can print these forms to give to them as well.

Can I write off Square fees on my taxes? 

Yes, you can write off certain fees when you file your taxes. It’s worth taking the time to familiarize yourself with which fees are eligible for deduction, so your tax return is accurate.