This article is for platforms or marketplaces using Connect to file and deliver 1099 tax forms for their connected accounts.

You can update information for a connected account by directly editing the connected account in the Dashboard or calling the update account API. Changes to connected accounts after January 31, 2023 will not be reflected in the tax forms. If you need to make changes to your connected account’s tax form after January 31, 2023, you’ll need to import the updated information via CSV. Information imported into a connected account's tax form will not affect that account's verification status in Stripe.

• For connected accounts that do not have Stripe-hosted dashboard access, information can be updated by the platform through the Stripe Dashboard or by calling the update account API.
• For connected accounts with Express Dashboard access, account information can be updated by the account holder via their Express Dashboard.
  • Business type changes for connected accounts can be made by your platform using the update account API.

If you want to change the tax form but not the connected account, you can import a CSV file with the updated information. Consider updating the connected account with the same information for future tax years.

If you previously used Payable to collect updated information for your connected accounts and don’t have an alternate way to do this, they can provide this information in Payable. Please contact us for instructions.

What tax details are included on a 1099 tax form?

For merchants that are set up as US Companies, Stripe will use the business tax details except when the account is set up as a Single Member LLC / Sole Proprietorship, in which case we’ll use the owner’s personal tax details. This is because these account types are considered disregarded entities by the IRS for income tax purposes. 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.

You may have some connected accounts set up as Single Member LLCs or Sole Props that want to use their business tax details for 1099 tax reporting instead of their personal tax details. If you’d like to support that, you can make the changes by collecting the business tax details from the user and updating the 1099 tax forms either via CSV import or the Tax Form Editor once tax form totals are finalized in early January.

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.