# How do I ensure I’m collecting tax reporting information for my connected accounts?

Platforms using Stripe can utilize specific US tax reporting capabilities to collect information needed for IRS tax filing requirements for connected accounts. By turning on these capabilities, the collection and verification of tax information will be required when accounts reach 600 USD in charges and payouts will be paused if the tax information isn't collected and verified.
---
## Overview of tax Reporting capabilities
Stripe offers two tax reporting capabilities designed to support 1099 filing obligations:
* **tax\_reporting\_us\_1099\_misc:** Used to collect information required for Form 1099-MISC which covers royalties, prizes, rent payments, medical and healthcare payments, and Form 1099-NEC for payments to non-employees, contractors, freelancers.
* **tax\_reporting\_us\_1099\_k:** Used for reporting payments received via credit card transactions and third-party payment networks.
## Required tax information
The specific information required varies by business structure, but generally includes:
* Legal name (individual or business name)
* Tax Identification Number (TIN)
* Address details
## Payout restrictions based on verification
To ensure compliance:
* Payouts will be disabled if required tax information is not collected and verified once connected accounts reach 600 USD in charges.
* For existing accounts exceeding 600 USD in charges without verified tax info, payouts are immediately paused until verification is completed.
## Benefits of enabling these capabilities
By enabling these capabilities, platforms can collect required personal and business tax information from connected accounts to help:
* Fulfill IRS reporting obligations to file 1099 forms with accurate recipient tax information.
* Deliver IRS-compliant reporting statements to connected accounts by January 31.
## Activation and compliance considerations
* These US tax reporting capabilities are **not enabled by default** for connected accounts.
* Platforms must explicitly request the capabilities through the Capabilities API by setting the relevant capability's requested value to `true`.
* Capabilities can be requested during connected account creation or added later as tax reporting needs evolve.
* Without these capabilities enabled:
  * Stripe **does not enforce** the collection of TINs at the 600 USD threshold.
  * Connected accounts may operate without providing tax information, placing the responsibility on the platform to collect and verify this information independently.
  * There is potential compliance risk as platforms may lack necessary tax information when filing season arrives.
## Cost information
* The basic 1099 tax reporting capabilities are included with Stripe Connect.
* Additional paid services, such as Tax ID Additional Verification or W-8/W-9 Connect, are available for enhanced tax information management features.
## Additional resources
For more detailed guidance, refer to the following Stripe documentation:
* [Platform tax reporting for Connect platforms](https://docs.stripe.com/connect/platform-tax-reporting)
* [Tax reporting](https://docs.stripe.com/tax/reports)
* [Required Verification Information for Taxes](https://docs.stripe.com/connect/required-verification-information-taxes)
* [Account capabilities](https://docs.stripe.com/connect/account-capabilities)
*This article is for informational purposes only and does not constitute legal or tax advice. Consult with your tax advisor for specific guidance related to tax reporting.*