Does Stripe Give You a 1099 for Payment Processing?

Stripe is a widely used payment processor that helps businesses accept online payments. If you use Stripe to receive payments, you might wonder whether you’ll get a 1099 form for tax reporting. The answer depends on factors such as the type of transactions processed and the total amount received during the year.

Federal Reporting Threshold

The IRS requires payment processors like Stripe to report certain transactions, but not all users will receive a 1099-K. As of 2024, Stripe must issue a 1099-K if a user receives over $20,000 in gross payments and has more than 200 transactions in a calendar year. This threshold remains in place after delays in implementing a lower $600 reporting requirement.

These thresholds apply only to payments for goods and services. Personal transactions, such as splitting rent or reimbursing a friend, are not included. Even if Stripe does not issue a 1099-K, users must still report all taxable income on their tax returns.

Types of 1099 Issued by Payment Platforms

Stripe may issue different types of 1099 forms depending on the nature of payments received. The most common are the 1099-K, 1099-NEC, and 1099-MISC.

1099-K

The 1099-K is issued to businesses and individuals who meet the federal reporting threshold. It reports total gross payments received through Stripe before deductions such as fees, refunds, or chargebacks.

The form includes monthly payment totals, the recipient’s Taxpayer Identification Number (TIN), and Stripe’s information as the payment settlement entity. It does not distinguish between taxable and non-taxable income, so recipients must determine what portion is subject to taxation. Businesses receiving multiple 1099-Ks from different processors must aggregate these amounts when reporting income.

1099-NEC

The 1099-NEC (Nonemployee Compensation) reports payments made to independent contractors or freelancers. Unlike the 1099-K, which is issued by payment processors, the 1099-NEC is provided by businesses that hire self-employed individuals for services. If a company uses Stripe to pay a contractor, it must issue a 1099-NEC if payments total $600 or more in a calendar year.

This form reports only compensation for services, excluding reimbursements or product purchases. The payer must ensure the recipient’s TIN is correct to avoid IRS penalties. Contractors receiving multiple 1099-NECs must report the total amount as self-employment income. The IRS uses this form to track non-employee earnings and ensure proper self-employment tax payments.

1099-MISC

The 1099-MISC covers various types of income that do not fall under the 1099-K or 1099-NEC categories. Common payments reported on this form include rent, legal settlements, and prize winnings. If a business uses Stripe to distribute such payments and they total $600 or more in a year, a 1099-MISC may be required.

Unlike the 1099-K, which reports gross payment volume, the 1099-MISC details specific types of income. For example, Box 1 reports rent payments, while Box 3 covers awards or bonuses. Businesses issuing a 1099-MISC must also file a copy with the IRS. Failure to report this income can result in penalties.

Confirming Eligibility

Whether Stripe issues a 1099 form depends on multiple factors beyond the total amount received. The classification of payments, the type of account used, and state-level regulations all play a role.

While federal law sets general thresholds, some states have stricter requirements. For example, Massachusetts and Vermont require a 1099-K for total gross payments exceeding $600, regardless of the number of transactions.

The type of Stripe account used also matters. Businesses and sole proprietors processing payments directly through Stripe are more likely to receive tax forms than individuals using Stripe for personal transactions. If payments are received through a platform that integrates with Stripe—such as Shopify, Lyft, or Patreon—it may be the platform, not Stripe, that issues the tax documents.

How transactions are categorized within Stripe also affects reporting. Payments marked as “friends and family” or non-business-related transfers are typically excluded. However, if an account is classified as a business, Stripe may report all incoming payments as taxable income. Users should ensure their account settings accurately reflect their transactions.

Retrieving the Form

If Stripe determines that a user qualifies for a 1099 form, the document is typically available through the platform’s Tax Forms section. Users should ensure their tax identification details, such as their Social Security Number (SSN) or Employer Identification Number (EIN), are correctly listed in their Stripe account, as inaccuracies can delay form issuance or cause IRS mismatches.

Tax forms are generally issued by January 31st of the following tax year. Users can access them digitally through Stripe’s dashboard. To locate the form, users should log into their Stripe account and navigate to the Documents or Tax Forms section, where they can download a PDF copy. If Stripe uses a third-party service for tax document distribution, users may receive an email with retrieval instructions.

It is important to verify that the information on the form matches internal records, including gross payment amounts and business details. Discrepancies could lead to IRS inquiries or require filing a corrected form.

When to Contact Support

If a 1099 form is missing, contains incorrect information, or is inaccessible, contacting Stripe’s support team may be necessary. Before doing so, users should verify that they meet the reporting thresholds and that their tax details are correctly entered in their account settings. If a form was expected but not received, checking the Tax Forms section of the Stripe dashboard and reviewing email notifications can help determine if the document was issued.

Errors such as incorrect payment totals, mismatched tax identification numbers, or missing business details should be addressed promptly. Stripe may require users to submit a request for a corrected form, which can take time to process. If a 1099 was issued under the wrong tax classification, such as receiving a 1099-K instead of a 1099-NEC, users should clarify the nature of their transactions with support. Delays in resolving these issues can impact tax filing deadlines, so addressing discrepancies early is advisable.