Reporting 1099-K from Stripe when under 200 transactions threshold

You definitely need to report all your income whether you received a 1099-K or not. The 200 transaction threshold just determines whether Stripe is required to send you the form - it doesn't change your obligation to report the income. The good news is you absolutely can deduct your business expenses! It sounds like you're not setting up your tax return correctly in TurboTax. You should be reporting this as self-employment income on Schedule C, where you'll list both your gross income ($215k) AND all your legitimate business expenses (materials, supplies, contractor payments, etc.). After deducting all valid business expenses, you'll only pay taxes on your net profit - not the gross amount. Make sure you're entering this as business income, not "other income" which wouldn't allow for those deductions.

I had a similar issue last year with my Stripe account. Wish I had found taxr.ai sooner! I was trying to manually calculate everything and was totally messing up my deductions. I found https://taxr.ai when I was desperately looking for help with my business expenses and correctly reporting my income without a 1099-K. The thing I liked is they automatically analyzed all my Stripe transactions and categorized them correctly as business income, then helped identify all the legit business expenses I could deduct. It saved me from overpaying like $8k in taxes because I was calculating everything wrong. They even explained how to handle the threshold situation where Stripe doesn't send a 1099-K but you still need to report the income.

I was really skeptical at first about taxr.ai but decided to try it because I was in the exact same situation with Stripe income and no 1099-K. What a game changer! The system automatically found over $65k in legitimate business expenses I could deduct that I was completely missing when doing it myself in TurboTax. It identified all my material costs, subcontractor payments, equipment purchases, even mileage I had tracked in a separate app. The best part was it showed exactly how to report everything correctly on Schedule C, and my tax bill dropped from $12k to about $4.5k. All completely legitimate deductions I was entitled to but didn't know how to properly claim. Definitely worth checking out if you're dealing with self-employment income.

If you're struggling to get answers from the IRS about your Stripe income reporting situation, I highly recommend trying Claimyr (https://claimyr.com). I spent WEEKS trying to get through to the IRS to clarify how to report my payment processor income without a 1099-K and was going absolutely nowhere. Claimyr got me connected to an actual IRS agent in about 20 minutes when I had been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent was able to confirm exactly how to report my Stripe income and what documentation I needed to keep in case of an audit. Honestly wish I'd known about this service years ago instead of wasting hours listening to hold music.

I have to eat my words and apologize to Profile 8. After my skeptical comment, I decided to try Claimyr myself for a different tax issue (also related to unreported 1099 income), mostly to prove it wouldn't work. I was SHOCKED when they called me back in 15 minutes with an actual IRS agent on the line. The agent walked me through exactly how to report income when you don't receive the expected tax forms, confirmed I was doing my Schedule C correctly, and even gave me some tips about documentation to keep. Saved me hours of frustration and worry about doing it wrong. Not sure how they get through when the regular line is impossible, but it definitely works. Sorry for doubting!

Make sure you're tracking ALL your business expenses! I'm in construction and these are the categories I deduct: - Materials & supplies - Subcontractor labor - Tools & equipment - Vehicle expenses/mileage - Business insurance - Software subscriptions - Phone & internet (business %) - Home office (if you have one) - Professional services (accounting, legal) Without a 1099-K, you still report the full income on Schedule C line 1 as "Gross receipts or sales" then deduct all expenses. You only pay tax on the net profit. Don't leave money on the table by missing deductions!

i run a small biz and stripe didnt give me a 1099k either. its normal. the 200 transaction rule is why. u still gotta report ALL income even without forms. the irs can see ur bank deposits so dont try to hide it lol i use quickbooks self employed. it connects to stripe and categorizes everything automatically. then export to turbotax. super easy. sounds like ur not entering expenses right in turbotax if ur paying tax on the full 215k. theres no way u should be paying that much!!

Just went through this exact situation last year! You're absolutely right to be confused - the 1099-K threshold thing trips up a lot of small business owners. Here's what I learned: You definitely need to report all $215k as gross income on Schedule C, but then you get to deduct ALL your legitimate business expenses from that. Based on your example numbers, if you're consistently making $3.5k profit per $12k job, your actual taxable income should be way lower than $215k. The $14k tax bill from TurboTax sounds like you might be missing expense deductions or not categorizing things correctly. Make sure you're using the business income section (Schedule C) not just adding it as "other income." For your renovation business, you should be able to deduct: materials, subcontractor payments, permits, tools, vehicle expenses for job sites, insurance, and probably a bunch of other stuff. Keep detailed records of everything - receipts, invoices, mileage logs. Also, with 4 kids you should have some decent tax credits working in your favor. Double-check that TurboTax is applying child tax credits and any other credits you qualify for. Something seems off if you're paying that much tax on what sounds like a relatively modest profit margin business.

The confusion around Stripe not issuing a 1099-K is totally understandable! This happened to me too when I first started my consulting business. The key thing to remember is that the 200 transaction threshold is just Stripe's requirement for sending the form - it has absolutely nothing to do with your tax obligations. You definitely need to report that full $215k as gross income, but here's the good news: you can deduct ALL your legitimate business expenses from it. Based on your bathroom remodel example, it sounds like you should have substantial deductions that will bring your taxable income way down. The $14k tax bill from TurboTax is a huge red flag that something's not right in how you're entering your information. With 4 kids and what sounds like reasonable profit margins, you shouldn't be owing nearly that much. Make sure you're: 1. Using Schedule C (business income/loss) not just "other income" 2. Itemizing ALL business expenses: materials, subcontractor payments, permits, tools, vehicle expenses, business insurance, etc. 3. Taking advantage of all the tax credits you qualify for with 4 dependents Also keep in mind that you'll pay self-employment tax on your net profit (about 15.3%), but that's calculated after all your business deductions. If you're consistently only netting $3.5k profit per $12k job, your actual taxable business income should be much lower than $215k. Consider having a tax professional review your return this year - the cost will likely pay for itself in tax savings and peace of mind.