US tax reporting for Connect platforms

Stripe Connect allows platforms to provide a seamless, end-to-end payment service for their connected accounts. This service may come with certain responsibilities, including tax information reporting.

Stripe issues 1099-K forms for connected accounts where Stripe controls the pricing or for transactions where the connected account pays fees directly to Stripe. For all other transactions where the platform controls the pricing, the platform is responsible for filing any relevant 1099 forms.

In other words, Stripe issues 1099-K forms for your connected accounts that have transactions where controller.fees.payer equals account or where controller.fees.payer equals application_unified_accounts_beta and the connected account pays the processing fees.

Stripe doesn’t issue a 1099-K to your connected account in the following scenarios:

• Where controller.fees.payer equals application or application_express or application_custom

Consider issuing a Form 1099 to report income and payment transactions. There are several types of 1099 forms, and the applicable form depends on the type of payments you make to your connected account.

1099-NEC

Use the 1099-NEC form to report non-employee compensation.

The account must meet all of the following criteria in the previous calendar year:

• Based in the US or a US taxpayer
• $600 or more in payments

1099-MISC

Use the 1099-MISC form to report other forms of payments made in the course of your business.

The account must meet all of the following criteria in the previous calendar year:

• Based in the US or a US taxpayer
• $600 or more in payments or $10 in royalties

1099-K

Use the 1099-K form to report payment transactions.

The account must meet all of the following criteria in the previous calendar year:

• Based in the US or a US taxpayer
• More than $20,000 in gross volume
• More than 200 transactions