1099 Tax Reporting and Filing for Platforms and Marketplaces

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 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 form for each person or business from whom you withheld taxes, regardless of the amount of the payment.

There are several types of 1099 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 2022 tax forms to IRS Deadline to provide 2022 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, 2023 Jan 31, 2023
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, 2023 if paper filing

Mar 31, 2023 if e-filing
Jan 31, 2023
(Feb 15, 2023 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 $600 USD in total gross volume*
Feb 28, 2023 if paper filing

Mar 31, 2023 if e-filing
Jan 31, 2023

*Beginning January 1, 2022, platforms are required to send 1099-Ks to merchants when the gross amount of total reportable payments exceeds $600 in a calendar year. This change impacts tax reporting for 2022 and subsequent years.

For returns prior to 2022, platforms were only required to send 1099-Ks to merchants when the gross amount of total reportable payments exceeded $20,000 and the total number of such transactions exceeded 200 in a calendar year.

IRS penalties ranging from $50 to $280 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.