Welcome to another session of our Studio Pro Learning Lab series! 💡 

Objectives for this session: 

✔️ Understand what a 1099-K is, who receives one, and why it matters. 

✔️ Learn which Studio Pro reports help you prepare for tax season with confidence. 

✔️ Apply best practices to organize records and reduce tax season stress.

Tax Season Reporting and 1099-Ks Frequently Asked Questions

Q: What is a 1099-K?

A: A 1099-K is an informational tax form issued by payment processors for U.S. merchants. If you use Studio Pro Merchant Services, your 1099-K is issued by Stripe, which processes card and ACH payments on behalf of Studio Pro.

The 1099-K reports gross payment volume, not profit. This includes all payments processed through the payment processor and may include refunds, chargebacks, processing fees, convenience fees, and sales tax if applicable.

Q: Who receives a 1099-K?

A: You will receive a 1099-K if you meet the applicable reporting thresholds. The current federal threshold for 2025 1099-Ks is $20,000 in gross payments AND 200 transactions during the calendar year. Both conditions must be met.

Some states have different or lower thresholds. This means you may receive a 1099-K even if you do not meet the federal threshold. Your tax professional can help confirm what applies to your business.

Q: When will my 1099-K be available?

A: 1099-K forms are typically available in your Merchant Services account by January 31. You can access them under More > Merchant Services > Documents.

Q: Does the 1099-K include both card payments and ACH payments?

A: Yes. Card payments and ACH payments are combined into a single 1099-K. You will not receive separate forms for different payment types.

Q: Does the 1099-K include cash or check payments?

A: No. A 1099-K only includes payments processed through a payment processor. Cash and check payments are not included.

You should still pull reports from Studio Pro that include cash and check payments and provide those totals to your accountant for tax preparation.

Q: Why doesn’t my 1099-K total match my Studio Pro reports?

A: This is common and usually expected. One of the most common reasons is timing differences.

Stripe processes transactions using UTC time, not local time. Payments processed late on December 31 in your local time zone may fall into January 1 in UTC time and be reported on the following year’s 1099-K.

Studio Pro reports reflect the local transaction date, while the 1099-K reflects Stripe’s processing date. This can cause year-end and month-end discrepancies.

Q: Why shouldn’t I compare my 1099-K to my bank statements?

A: Bank statements show when deposits hit your bank account. The 1099-K reports when payments were processed.

Because card payouts typically occur 2–3 business days later, and ACH payouts can take 5–7 business days, deposit dates will not always align with processing dates. This timing difference makes bank statements an unreliable comparison for 1099-K totals.

Q: How do refunds and chargebacks affect my 1099-K?

A: The 1099-K includes the original payment amount, even if that payment was later refunded or charged back. Studio Pro reports may reflect refunds or chargebacks differently, which can cause totals not to match exactly.

This is another reason small discrepancies between reports are normal.

Q: Why does my 1099-K show my SSN instead of my EIN?

A: This depends on how your merchant account is set up.

• If your account is set up as an individual, sole proprietor, or single-member LLC filing on Schedule C, Stripe uses your SSN as the tax ID.

• If your account is set up as a company, Stripe uses your EIN.

This is not an error. The tax ID is tied directly to your merchant account setup.

Q: What happens if my business ownership changed during the year?

A: If there was an ownership change and Studio Pro was not notified, your 1099-K may still reflect the previous owner’s information.

If this occurs, contact Studio Pro Support. You will need to provide the ownership change date so the merchant team can review and assist with issuing a corrected 1099-K if applicable.

Q: What if the address on my 1099-K is incorrect?

A: Stripe does not reissue 1099-Ks for address changes alone. However, you should still notify Studio Pro so your merchant account can be updated. This ensures future 1099-Ks reflect the correct address.

Q: Where can I download all my merchant transactions for tax preparation?

A: You can download a full transaction report from More > Merchant Services > Payments Console.

Filter the report by your tax year, then download the file. The report includes all transactions within the selected date range, including refunded and charged-back payments, processing fees, and any convenience or surcharge fees collected.

Q: Which Studio Pro reports are helpful for tax preparation?

A: Commonly used reports include:

• Payments Console download for full transaction details

• Total Income by Date Range for a high-level income summary

• Income by Transaction Code to break income into categories like tuition, registration, or competitions

• Who Owes Me Money to identify outstanding balances or write-offs

• Sales Tax reports if you collect or include sales tax

These reports help organize data but should be reviewed with your accountant.

Q: Can Studio Pro or its Support Team provide tax advice?

A: No. Studio Pro provides tools and reports to support tax preparation but cannot provide tax advice or confirm what should be reported on tax forms. Final tax decisions should always be made with your accountant or tax professional.