Will Drip issue a 1099-K if I get paid out via Stripe?
To make tax season easier for our U.S.-based sellers, Drip has teamed up with Stripe to provide a 1099-K form for eligible sellers. This form summarizes your income from Drip, giving you the information you need to handle your taxes for 2024. Here’s everything you need to know to ensure you’re prepared to receive your 1099-K.
When does Stripe issue a 1099-K form?
Stripe will issue a 1099-K form to you if:
Your account is based in the United States, and
You meet or exceed $5,000 USD in total gross volume in the previous calendar year (for 2024 and beyond).
Before the calendar year 2024, the reporting threshold was set at $20,000 USD in total gross volume and 200 transactions. This form provides a summary of your sales activity and is sent to both you and the IRS to meet tax reporting requirements.
Steps to Ensure You Receive Your 1099-K
1. Verify Your Stripe Account and Tax Details
Starting November 11, 2024, sellers with connected Stripe accounts will receive an email from Stripe with detailed instructions. This email will guide you through verifying your tax details and selecting your preferred delivery method, either electronic or by mail.
Action Required: Follow the email instructions promptly to confirm that your information is accurate and that your 1099-K will be sent to the correct address.
2. Set Up a Stripe Account if You Haven’t Yet
Log into your Drip account through your browser or mobile app.
Go to Seller hub > Payout and select Stripe. Guide: https://help.dripshop.live/en/articles/9902875-how-to-set-up-drip-payouts-via-stripe-connect
Follow the setup prompts to create a Stripe account and connect it to Drip. This will ensure that your payout method is set up to receive a 1099-K form.
Note: Ensure your legal name, address, and tax details in Stripe match your records to prevent processing issues.
Key Deadlines
By November 11th, 2024: Ensure you’ve received the email from Stripe and have confirmed your tax information and delivery preferences.
By January 31st, 2025: All eligible sellers will receive their 1099-K form based on their selected delivery preference (either electronic or mailed).
Delivery Methods
Electronic: If you choose this option, you’ll be notified by email when your 1099-K is ready for download.
Mail: If you select mail delivery, your form will be sent to the mailing address on file with your Stripe account.
What is included in the 1099-K form from Stripe?
The 1099-K form from Stripe is an informational tax document that summarizes all the payment transactions processed through your Stripe account. It includes:
Total gross volume of sales for the year.
Breakdown of transactions processed through Stripe.
This form is important for ensuring accurate tax filing and will be sent to you if your account meets the reporting threshold set by the IRS.
How can I access my 1099-K form from Stripe?
To find your 1099-K form issued by Stripe, follow these steps:
Log into your Stripe account.
Navigate to the Tax Forms section under your account settings.
Your 1099-K form for the previous year should be available for download by January 31st.
This form can then be used when preparing your tax returns.
Does Stripe collect any other tax forms from me?
Yes, Stripe may require you to submit additional tax documents depending on your account status and the tax reporting requirements. Stripe must meet various U.S. tax reporting obligations, including collecting and reporting tax documents like W-9 forms to the IRS.
Make sure to keep your tax information up to date to avoid any issues with payouts or tax reporting.
For more information on Stripe's tax document requirements, visit Stripe’s official support pages on 1099 tax forms: