1099ThresholdDesk / 2026 1099-NEC, 1099-K & W-9 Guides / Stripe, Square & Credit Card Payments in 2026: IRC § 6050W Double-Reporting Exclusion
Stripe, Square & Credit Card Payments in 2026: IRC § 6050W Double-Reporting Exclusion
Stripe, Square & Credit Card Payments in 2026?
Under IRC § 6050W and Treas. Reg. § 1.6041-1(a)(1)(iv), payments made to a vendor by credit card, debit card, Stripe, or Square are reportable solely by the processor on Form 1099-K and must be excluded from the payer Form 1099-NEC Box 1.
Under IRC § 6050W and Treas. Reg. § 1.6041-1(a)(1)(iv), payments made to a vendor by credit card, debit card, Stripe, or Square are reportable solely by the processor on Form 1099-K and must be excluded from the payer Form 1099-NEC Box 1.
Open 2026 $2,000 vs. $600 1099 & W-9 Reconciler
2026 Compliance Checklist
- Collect Signed Form W-9 Before First Disbursement: Never release a check, ACH, or Zelle payment without a signed W-9 on file, or deduct 24% IRC § 3406 backup withholding.
- Separate IRC § 6050W Card/TPSO Payments: Exclude Stripe, Square, and credit card payments from Form 1099-NEC Box 1.
- Verify State $600 Non-Conformity: Even if a vendor was paid between $600 and $1,999 in 2026 (exempt federally under OBBBA § 70432), verify whether your state still mandates a $600 state 1099 filing.
Frequently Asked Questions
Stripe, Square & Credit Card Payments in 2026?
Under IRC § 6050W and Treas. Reg. § 1.6041-1(a)(1)(iv), payments made to a vendor by credit card, debit card, Stripe, or Square are reportable solely by the processor on Form 1099-K and must be excluded from the payer Form 1099-NEC Box 1.