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Do I have to pay taxes when I organize a trip through SquadTrip?
Do I have to pay taxes when I organize a trip through SquadTrip?

Tax questions and SquadTrip's IRS reporting requirements

Updated over a week ago

⚠️ Important: SquadTrip is unable and does not provide any tax advice to organizers.

Intended Audience: Organizers using SquadTrip for fund collection.

Article Summary: Learn about SquadTrip's tax reporting requirements for organizers. Understand when a 1099-K form is issued, the criteria for issuance, and important details about reporting to the IRS, ensuring compliance for individuals and businesses within the United States.

If you are collecting funds through SquadTrip, we must comply with reporting requirements to the United States Internal Revenue Service. Stripe is the official payment processing system for SquadTrip and therefore all documents are issued by Stripe.

As per these requirements, Stripe will issue a 1099-K form if and ONLY if a user:

(a) collects more than 200 transactions a year on SquadTrip AND

(b) collects over USD $20,000 worth in a year on SquadTrip.

If the user does not meet this criteria, Stripe will not issue a 1099-K report to the IRS.

Stripe is required to report to the IRS the total amount of gross payments (card transactions only) that you have received through the platform, before any refunds, disputes, or adjustments.

More about the 1099-K form and process can be found here.

Also, here is a link for a short video that explains Form 1099-K better
​https://www.loom.com/share/1247b15976e54f5c9769745c82e59f7d

Please note that this policy only applies to individuals and businesses registered within the United States.

Frequently Asked Questions

What is a 1099-K form?

The 1099-K form is a statement that summarizes the total payment activity of your account. It will be provided to you and the IRS, as well as some US states, if, in 2023, you collected more than $20,000 and had more than 200 transactions via SquadTrip. It's important to note that if you have connected your own Stripe account to collect payments, you will receive a 1099-K form directly from Stripe.

When and where can I expect my 1099-K tax form?

If you meet the reporting thresholds mentioned above, you will receive a 1099-K form in January 2024. This will either be mailed to your registered address or sent electronically to your preferred email address.

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