# 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.

## 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

{% hint style="info" %}
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.
{% endhint %}

## 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.

## 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**.

## 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.

## 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.

## Next Steps for Sellers

**1. Set Up Stripe**\
If you do not already have a connected Stripe account, please register [here](http://connect.stripe.com/express_login) 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.

## 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.

## FAQs

<details>

<summary>What is Form 1099-K?</summary>

A tax form that reports payments processed by third-party platforms to the IRS and state tax agencies.

</details>

<details>

<summary>What if I don’t receive a 1099-K?</summary>

You must still report all taxable income, even if you do not receive a form.

</details>

<details>

<summary>I opted out of e-delivery from Stripe. What happens now?</summary>

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.

</details>

<details>

<summary>I forgot my Stripe login. What should I do?</summary>

Please contact **Stripe Support**. Palmstreet does not have access to your Stripe account credentials.

</details>

<details>

<summary>I have multiple Palmstreet accounts. How will this be reported?</summary>

Stripe consolidates all earnings under the same **TIN** (SSN or EIN). You will receive one 1099-K covering all accounts tied to that TIN.

</details>

<details>

<summary>Are there state-specific requirements?</summary>

Yes. Several states have lower thresholds (e.g., **$600** in MA, MD, NC, and others). You can view each state’s reporting threshold [here](https://docs.stripe.com/connect/1099-K) and will be sent a 1099-K if you qualify under your state threshold.

</details>

For more information, visit the [Palmstreet Seller Hub](https://seller.palmstreet.app/seller/?redirect=%2F) or consult your tax professional.\
Palmstreet does not provide tax, legal, or accounting advice.


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