1099 Tax Reporting and Filing for Platforms and Marketplaces

If you’re running a platform or marketplace, you may be required to file 1099 tax forms with the IRS and state authorities. A 1099 tax form is used to report various types of income and payment transactions. For example, a marketplace may issue 1099s to summarize earnings for independent contractors, while a software platform may issue 1099s to summarize their customers’ payment transaction volume. There are several types of 1099 TAX forms and we recommend consulting a tax advisor to determine your specific tax filing and reporting requirements.


Looking for your 1099-K from Stripe? If you're not a platform or marketplace and accept payments with Stripe, read more about receiving a 1099-K.

If you’re running a platform or marketplace, you may be required to file 1099 tax forms with the IRS and state authorities, and deliver physical or electronic copies to your sellers or service providers in the US.

A 1099 tax form is used to report various types of income and payment transactions. For example, a marketplace may issue 1099s to summarize earnings for independent contractors, while a software platform may issue 1099s to summarize their customers’ payment transaction volume. In addition, you’re required to file a 1099 tax form for each person or business from whom you withheld taxes, regardless of the amount of the payment.

There are several types of 1099 tax forms. We’ve summarized the most common forms that platforms and marketplaces using Connect may need to consider. We recommend consulting a tax advisor to determine your specific tax filing and reporting requirements.

Form

General use

When to send
(federal requirements)

Deadline to report 2023 tax forms to IRS

Deadline to provide 2023 tax forms to recipient

1099-NEC

Typically used to report non-employee compensation

Account meets all of the following criteria in the last calendar year:

- Based in the US or US taxpayer
- Generated $600 USD or more in payments

Jan 31, 2024

Jan 31, 2024

1099-MISC

Typically used to report other forms of income to service providers or independent contractors

Account meets all of the following criteria in the last calendar year:

- Based in the US or US taxpayer
- Generated $600 USD or more in payments

Feb 28, 2024 if paper filing

Mar 31, 2024 if e-filing

Jan 31, 2024
(Feb 15, 2024 if reporting in Box 8 or 10)

1099-K

Typically used to report payment transactions

Account meets all of the following criteria in the last calendar year:

- Based in the US or US taxpayer
- Generated more than 200 transactions and $20,000 USD in total gross volume in a calendar year*

Feb 28, 2024 if paper filing

Mar 31, 2024 if e-filing

Jan 31, 2024

*On November 21st, the IRS announced that the 1099-K filing threshold will remain at 20,000 USD and 200 transactions for tax year 2023.

IRS penalties ranging from $50 to $290 per form may apply for each instance where you:

Larger penalties may be enforced where there is evidence of intentional disregard or neglect.

If you’re using Connect with Express or Custom accounts, you can create, manage, file, and deliver 1099s directly from the Stripe Dashboard.

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.