Palmstreet Earnings and 2025 Tax Filing

Palmstreet partners with Stripe and PayPal to issue Form 1099-K to eligible U.S. sellers. For the 2025 tax year, sellers who earn over $20,000 and make more than 200 withdrawals on Palmstreet will receive a 1099-K directly from Stripe or PayPal by January 31, 2026.

This guide summarizes who receives a 1099-K, how the thresholds work, and what steps sellers should take to prepare.

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1099-K Eligibility for 2025

The IRS requires third-party payment platforms to issue Form 1099-K when BOTH of the following are met:

• More than $20,000 in payments for goods sold AND
• More than 200 withdrawals during 2025

Important:
The IRS increased the reporting threshold from the planned $5,000 for 2024.
This means many sellers who received a 1099-K last year may not receive one this   year—even if their earnings increased.

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Seller Hub Earnings Dashboard

Sellers can access their earnings information in the Seller Hub. Starting in early January, a view will be created to clearly show your total platform earnings in 2025. This information can be used for tax reporting purposes even if you do not receive a 1099-K form.

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Sellers Using Stripe

• Only sellers with an active Stripe Connect account will receive a 1099-K through Stripe.
• To ensure accurate reporting, sellers must have their Stripe Connect account set up by January 15, 2026.

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Sellers Using PayPal

• No special PayPal account type is required to receive a 1099-K.
• If you receive payments through PayPal and meet the IRS threshold, PayPal will automatically issue your 1099-K. PayPal consolidates earnings across all platforms and the information in the 1099-K will be from all sources of earnings into your PayPal account.

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Sellers Using Both Stripe & PayPal

• If you meet the IRS threshold on each platform individually, you will receive two separate 1099-K forms—one from Stripe and one from PayPal.
• If you do not meet the IRS threshold on either platform individually but exceed the threshold when combined, Palmstreet is required to issue a 1099-K for your total earnings.
  - In this case, Palmstreet will update your Stripe earnings to include your PayPal payouts, and Stripe will issue a single 1099-K that reflects earnings from both sources.
• If you exceed the IRS threshold on PayPal due to Palmstreet earnings and earnings from other sources, PayPal will issue a 1099-K that includes all PayPal activity. Palmstreet earnings may appear on both forms in this situation.

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Next Steps for Sellers

1. Set Up Stripe
If you do not already have a connected Stripe account, please register here as soon as possible.

2. Verify Tax Information
Stripe will email existing users in January 2026 to confirm or update tax information and to choose paperless delivery preferences.

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Important Deadlines

• January 15, 2026: Deadline for all Palmstreet seller accounts to be connected to Stripe.
• January 31, 2026: Stripe and PayPal will issue all required 1099-K forms.

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FAQs

1. What is Form 1099-K?
A tax form that reports payments processed by third-party platforms to the IRS and state tax agencies.

2. What if I don’t receive a 1099-K?
You must still report all taxable income, even if you do not receive a form.

3. I opted out of e-delivery from Stripe. What happens now?
Stripe will mail your 1099-K to the address on file. Sellers who neither opted in nor opted out will also receive a physical copy.

4. I forgot my Stripe login. What should I do?
Please contact Stripe Support. Palmstreet does not have access to your Stripe account credentials.

5. I have multiple Palmstreet accounts. How will this be reported?
Stripe consolidates all earnings under the same TIN (SSN or EIN). You will receive one 1099-K covering all accounts tied to that TIN.

6. Are there state-specific requirements?
Yes. Several states have lower thresholds (e.g., $600 in MA, MD, NC, and others). You can view each state’s reporting threshold here and will be sent a 1099-K if you qualify under your state threshold.

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For more information, visit the Palmstreet Seller Hub or consult your tax professional.
Palmstreet does not provide tax, legal, or accounting advice.