Does Square/PayPal report my sales to the IRS?
Payment processors may issue 1099-K forms once you meet reporting thresholds.
The Narrative
The Empathy
You rely on card payments and wonder if the IRS already sees your sales. The reporting rules feel like a black box.
The Education
Processors like Square and PayPal issue 1099-K forms when your sales reach certain thresholds, which can vary by federal or state rules. The form reports gross payments, not profit, so you still need to account for refunds, fees, and expenses. Even if you do not receive a form, the income is still reportable.
The Solution
Check your processor dashboard for current reporting thresholds and keep accurate records of sales and expenses. If you receive a 1099-K, reconcile it with your own totals. Staying organized makes reporting simple.
Should you integrate POS with bookkeeping?
Linking Square or PayPal to your bookkeeping can save time and reduce manual entry, especially when you are reconciling 1099-K totals. Integration works best when you still review deposits and fees regularly.
- Auto-import sales and fees to reduce data entry.
- Review deposits weekly to ensure totals match.
- Tag event sales so you can measure profitability by fair.
Stop Guessing. Start Growing.
Stop waiting until the end of the month to see if you made money. Get instant clarity on every sale, even without Wi-Fi.
