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How do taxes work with your Merchant Account.
How do taxes work with your Merchant Account.
Daniel Freire avatar
Written by Daniel Freire
Updated over a week ago

When to Expect your 1099-K

Triib will send out your companies 1099 K tax form for the prior year by January 31st each year. 


Where is the 1099-K sent?

If you use Triib for merchant processing, the 1099 will be sent to the address and owner on record when you signed the Stripe agreement that allows you use Stripe for your merchant processing. If you do not use Triib and Stripe for your processing, then you should ask your merchant processor about where the 1099 will be coming from and when it will be arriving as Triib cannot provide you information on personal merchant accounts.


I didn't receive my 1099-K?

If you didn't receive your 1099 there could be a few things going on.

  • You may not qualify for a 1099 - see the next section below for qualifications.

  • You may have the wrong address setup in Stripe.

  • You may not be using Triib and Stripe as your merchant processor - please confirm that you're using our system.

  • If you've confirmed that you have the correct name and address in stripe and you still have not received your 1099 by Feb 28th, please contact the Triib support team and we'll make sure to have it sent out to you. 

  • If you had an ownership change and didn't tell us about it. 


What is 1099-K?

Form 1099-K is an IRS information return that reports the gross amount of all reportable payment transactions. The gross amount reported is a calculation of the total of all payment card charges* processed through Stripe for the year, including:

  • Stripe processing and conversion fees

  • Shipping fees

  • Taxes

  • Refunded charges

  • All adjustments

These additional fees, refunds, and adjustments are not deducted from the total charges when calculating the gross volume and reporting to the IRS. The dollar amount of each transaction is determined on the date of the transaction.

*Please note, this only includes credit card transactions and is not applicable to cash or debit ACH sales. Customers may try to reconcile the 1099-K to their sales reports, but that will not be possible because of this distinction. Stripe calculates the gross amount reported on the 1099-K based on the data in their system, not us. If questions arise about how their amount was calculated, you can point them to this article in Stripe: Breakdown of transactions applied to 1099-K and Additional information to reconcile your 1099-K Form


How do I know if I qualify for a 1099-K?

The general criteria for if you should be receiving a 1099 are listed below. In order to qualify, you must satisfy all 3 criteria. If you only have 1 or two out of the 3 you may not qualify.

For full irs.gov requirements click here.

  1. Gross payments to a participating payee exceed $20,000. * Changing to $600 in 2022.

  2. There are more than 200 transactions with the participating payee. A transaction is considered a deposit into their bank account. * starting in 2022 - there is no transaction requirement.

  3. We do not provide any official forms to Foreign gyms at this point in time - only gyms located in the United States would qualify for a 1099.

Note some states have different requirements:

Massachusetts, Maryland, Mississippi, Virginia, and Vermont require 1099-Ks to be filed for each unique tax identification number with at least $600 USD in gross volume.

Missouri requires 1099-Ks to be filed for each unique tax identification number with at least $1,200 USD in gross volume.

Illinois requires 1099-Ks to be filed for each unique tax identification number with at least $1,000 USD in gross volume and more than 3 charges.


What if I had an ownership change or my EIN changed and forgot to tell Triib? 

  • If you had an ownership change and the EIN changed, we cannot change the 1099. 

  • Each business needs their own Stripe Merchant Account for accurate tax reporting.  We cannot change the 1099 to the new owner because the Stripe account was issued under the previous owner and processing continued under that account. 

  • The support team will need to disable the previous Stripe account of the previous owner and issue the new owner a Stripe account associated with the new legal entity and EIN.  


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