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 2020 tax forms to IRS Deadline to provide 2020 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
Feb 1, 2021 Feb 1, 2021
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
Mar 1, 2021 if paper filing

Mar 31, 2021 if e-filing
Feb 1, 2021
(Feb 15 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 $20,000 USD or more in total gross volume AND processed more than 200 transactions
Mar 1, 2021 if paper filing

Mar 31, 2021 if e-filing
Feb 1, 2021

IRS penalties ranging from $50 to $270 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.