1099 Form Types

What is a 1099-NEC form?

The 1099-NEC is a tax information form generally used to report non-employee compensation. If you’re a service provider or contractor who’s been paid $600 or more in a calendar year by a platform, and you’re based in the US or are a US taxpayer, you should expect to receive a 1099-MISC or a 1099-NEC—either through paperless delivery or paper mailing.

What is a 1099-MISC form?

The 1099-MISC is a tax information form generally used to report miscellaneous income such as royalties, awards, and other payments that may be made to a service provider or contractor. This helps the IRS track how much they can expect in taxes from recipients of the income.

If you have been paid $10 or more for royalties, or $600 or more for other income in a calendar year by a platform—and you’re based in the US or are a US taxpayer—you should expect to receive a 1099-MISC, either through paperless delivery or paper mailing.

What is a 1099-K form?

The 1099-K is a tax information form generally used to report gross payment transactions from the sales of goods and services. Recipients of a 1099-K are mostly businesses which have received payment using a Third Party Settlement Organization (TPSO) or third-party payment network. An Etsy seller, for example, would receive a 1099-K from Etsy.

If your gross amount of total reportable payments exceeds $20,000 and the total number of such transactions exceeds 200 in a calendar year —and you’re based in the US or are a US taxpayer—you should expect to receive a 1099-K, either through paperless delivery or paper mailing.

Which set of tax details will be used on my 1099 tax form?

For merchants that are set up as US Companies, Stripe will use the business tax details except when they are set up as a single member llc / sole proprietorship, in which case Stripe will use the owner’s personal tax details. This aligns with IRS expectations to see personal tax details on the tax forms of these types of business structures. For Individuals, Stripe will use the personal tax details. For additional information, please see the IRS website.

The table below shows which set of tax details Stripe will use for 1099 tax reporting.

Please contact your platform if you would like to file income tax returns using the name and EIN of your business.

This article is neither legal advice nor tax advice. We recommend that you speak to your tax advisor with any questions or concerns around tax reporting.