What is a 1099-K?
A 1099-K is a tax form used in the United States to report payments made through third-party payment processors, such as credit card transactions or payments made through platforms like Stripe, PayPal, or Square.
If you receive payments for goods or services through these platforms, you may receive a 1099-K if your total payments exceed a certain threshold. 1099-K forms are filed with the US Internal Revenue Service (IRS) and, if required, state tax departments.
This form helps the IRS track income from payment processors. Please see the IRS website for more information.
Who will receive a 1099-K from Trnd?
If you are a brand or seller based in the US, and you have received payments totaling $5,000 US or more via Trnd during the 2024 calendar year, you will receive a 1099-K. If your state has a filing threshold of less than $5,000 you may also receive a 1099-K form.
Irrespective of receiving a 1099-K form, Brands and Sellers must report all their income to the IRS and pay taxes accordingly. A 1099-K is only informational in nature and should NOT be used to report income or file your taxes.
When and how will I receive my 1099-K?
1099-K forms must be delivered to recipients by January 31 and can be sent via paperless delivery or postal delivery. Trnd partners with Stripe to collect all required information and deliver the 1099-K form to you.
Starting in November, Stripe Express will email you instructions on how to set up e-delivery and access your Stripe Express account. We strongly encourage opting into paperless delivery to ensure you receive your 1099-K quickly.
By mid January, confirm your tax information (i.e. name, address, SSN or EIN) and opt into paperless delivery.
By January 31, you will receive an e-delivery email when your 1099-K for the previous calendar year has been filed by Trnd, which includes a link to access your forms through your Stripe Express account. Once your 1099-K is ready, you can download the 1099-K from your Stripe Express Dashboard - “Tax Forms” tab.
What is Stripe Express, and how do I access it?
Stripe Express allows you to update your tax information, opt into paperless delivery, manage tax forms, and track your earnings. If you’re working with Trnd and earned $600 or more (within the calendar year in the US), Stripe will send an email inviting you to your account to start filling in some of the required information.
Your Stripe Express account was created when you connected your Trnd account to Stripe. You can get to your Stripe Express Dashboard by logging into Trnd.
Brands: Under your Brand name, navigate to “Go to Stripe Connect”
Sellers: Within your profile, “Go to Stripe to view and edit”
Which email address does Stripe use to send Stripe Express invitations and other Communication?
Stripe uses the email used when your Stripe Express account was created. This was when you connected your Trnd account to Stripe. This may or may not be the same email you use to login to Trnd. If you are unsure of what email was used, reachout to support at support@trnd.io.
I no longer have access to the phone number I signed up with. How do I log in to my Stripe Express account?
If you’ve lost or updated your phone number, you can select the “I no longer have access to this phone number” option during login or account creation to authenticate via email and change your phone number.
How can I download my 1099 tax form?
Detailed instructions on how to download your 1099-K from Stripe Express can be found here: https://support.stripe.com/express/questions/where-is-my-1099-tax-form
How do I update my tax information?
It is important to keep your tax information up-to-date and complete. Please proactively fill out all required information when you are logged into Stripe Express in the “Tax Forms” tab, and update them if there are any changes prior to early January.
You may find that your 1099 tax form reports your SSN and you want to use your EIN (or vice-versa). If that’s the case, you’ll want to reach out to Trnd to update your legal entity information.
Please note: If you’re operating as an individual, Sole Proprietorship, or Single Member LLC, the IRS will expect to see the individual owner’s Name and SSN (as opposed to Business Name and EIN) reported on your 1099 tax form.
What transactions are included in my 1099-K?
The gross payment amount (Box 1a) on Form 1099-K reports the total payments paid out to your Connected Stripe Account/Bank Account. It doesn't include adjustments for fees, credits, refunds, shipping, cash equivalents or discounts. These items are not income.
Does Trnd issue any other types of 1099 forms such as 1099-NEC or 1099-MISC?
Trnd does not issue any other type of 1099 forms. These forms are your obligation to file outside of Trnd.
Additional Resources
For additional resources, please refer to the IRS guidance: https://www.irs.gov/businesses/understanding-your-form-1099-k
For any further questions, please reach out to Trnd support at support@trnd.io