Summary of 2024 Tax Filing Guidelines for Palmstreet Sellers
Palmstreet is partnering with Stripe to provide 1099-K forms to U.S. sellers with Stripe Connect accounts. Sellers who earned over $5,000 in 2024 on Palmstreet will receive their 1099-K through Stripe by January 31, 2025. The form will cover all Palmstreet earnings, including those cashed out via PayPal and/or Dots.
Key Points:
1099-K Eligibility:
- Gross earnings over $5,000 in 2024 will trigger a 1099-K.
- The IRS lowered the reporting threshold for 2024 to $5,000 (dropping to $2,500 in 2025).
- Payments through PayPal or Dots will also be reported if linked to a Stripe account.
Stripe Account Requirement:
- Only sellers with a connected Stripe account will receive a 1099-K from Palmstreet.
- Sellers must have a Stripe Connect account by January 15, 2025 to be issued the correct payout information.
- If you’ve only used PayPal/Dots and haven’t linked Stripe, you won’t get a 1099-K from Palmstreet. PayPal may issue one instead.
Next Steps for Sellers:
- Set Up Stripe: If you don’t have a connected Stripe account, register here.
- Verification: Existing Stripe users will receive an email from Stripe in January 2025 to verify or update tax information and opt for paperless delivery.
Important Deadlines:
- All Palmstreet seller accounts need to be registered with Stripe Connect by January 15, 2025.
- Stripe will issue 1099-Ks no later than January 31, 2025.
FAQs:
- What is Form 1099-K? It reports payments from third-party platforms to the IRS and states.
- What happens if I don’t receive a 1099-K? You’re still required to report all income on your taxes, regardless of receiving the form.
- I opted out of electronically receiving a 1099-K from Stripe, now what? Stripe will mail all sellers with recorded earnings through Stripe a 1099-K. Sellers who did not opt in or out will still receive a physical tax form in the mail.
- What if I don't remember my Stripe login or password? Please contact Stripe Customer Support to reset your account. Palmstreet does not have access to this information.
- Multiple Palmstreet accounts? Stripe consolidates earnings across all accounts under the same TIN (e.g., SSN or EIN).
- State Reporting: Lower thresholds apply in some states (e.g., $600 in MA, MD, NC, etc.). The filling thresholds per state can be found here.
For further details, visit Palmstreet Seller Hub or consult your tax advisor. Palmstreet does not provide tax, legal, or accounting advice.
