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ziggyloo
‎01-30-2018 08:03 AM

1099K New MA legislation questions

Help!  I am in direct sales and use my square for events as well as parties.  I understand how to account for sales where someone pays and they receive the products right from me, but what about party orders where I swipe someone's card to then pay for their order with mine online from my direct sales company?  I do this to speed up processing on my end, but this makes it way more confusing now.

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VanKalkerFarms
Super Seller
‎01-30-2018 09:03 AM

If I'm reading this right and If you swiped your customer's card on your companies site then you didn't process the transaction thru you and it wouldn't be part of your income.  I would assume somehow you were making money on this transaction and got paid separately so that part would be income you need to report.  

 

Only Credit Card transactions that you took payment from thru Square will show up on your 1099 if you are required by the IRS to get one.

Bob Van Kalker
My Van Kalker Farms Garden Center website
My Rise'n Roll Bakery Schererville Indiana Facebook Page
My Rise'n Roll Bakery Cedar Lake Facebook Page
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ziggyloo
‎01-30-2018 09:09 AM

In response to VanKalkerFarms

I did not process/swipe the customers card through the companies site.  I used square at the party.

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VanKalkerFarms
Super Seller
‎01-30-2018 09:34 AM

In response to ziggyloo

ok, I didn't understand correctly what you said.

 

then all your sales will be in Square.  In 48 States if you have more than $20,000 AND more than 200 transactions you will get a 1099-k.  But you are in a Special state ( Massachusetts or Vermont) and you will get one if you processed more than $600 in Credit Cards

Bob Van Kalker
My Van Kalker Farms Garden Center website
My Rise'n Roll Bakery Schererville Indiana Facebook Page
My Rise'n Roll Bakery Cedar Lake Facebook Page
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ziggyloo
‎01-30-2018 09:50 AM

In response to VanKalkerFarms

Yes I know. I'm just looking for suggestions on how  best to account for everything with taxes.  It just seems silly to have to use the 1099k and then just write off those transactions as an expense.  I was not aware this would be happening.  It would have effected my decision to use square as much as I have and now in the future

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VanKalkerFarms
Super Seller
‎01-30-2018 09:59 AM

In response to ziggyloo

whether or not you get a 1099-k doesn't change that the transaction(s) took place.  So the people paying you at the parties via credit card thru Square is income which is mostly offset by the expenses of you buying the product.   

 

Any credit card company has to follow the rules the IRS sets out.

Bob Van Kalker
My Van Kalker Farms Garden Center website
My Rise'n Roll Bakery Schererville Indiana Facebook Page
My Rise'n Roll Bakery Cedar Lake Facebook Page
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