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Get your taxes done using TurboTax
Yes, enter all the 1099-K income as it was reported to you.
Even though you received income from more than one state, you would report the entire amount shown on Form 1099-K. The IRS expects you to report at least as much income as is reported to you on the 1099-K. As long as you do that, you have met your tax obligations for Form 1099-K.
Form 1099-K is an informational report of income received by a particular payment processor. It doesn't always reflect your total income and isn't required in order to file your business activity for tax purposes. The rules you stated apply to Square's reporting responsibilities, and not necessarily to your business tax return.
No, you don't need to split the income into two forms on your federal tax return.
You will need to determine how much income was sourced from each state, however, in order to accurately report your business activity on your state income tax returns.
No, you don't need a corrected 1099-K from Square.
Finally, the address on the 1099-K doesn't reflect the source of the income reported to you. Your own records will provide that information.
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