Girl Scout Cookie Sales and Square

[MnementhDragon]

I used Square to sell Girl Scout cookies at booths this year.  The Square account is under my name, but the linked bank account is the Troop account that is set up with the Girl Scouts TIN.  How do I handle the 1099 when it shows up?

[CatherineR]

Since the SQUARE account is in your name and likely your social security number, when a 1099K is issued for 2022 depending on the amount of sales (over $600 will be reported) then you will need to file a 1099 nominee form to the Girl Scouts TIN.  Here is a link that shows how to 1099 nominee:

https://www.investopedia.com/terms/n/nomineeinterest.asp

Another suggestion is to contact SQUARE and provide the correct TIN number for the Girl Scouts so they can generate the correct 1099K  before the end of the year.  This may only work if the Girl Scout cookie money is the only activity on the account for the year.  

[kdevere · Accepted solution]

Since the money ultimately gets to the account owned by the Girl Scouts, you can demonstrate it isn't income.  

A 1099-k is an information based form and is not necessarily income.  If you were given gifts or reimbursed through a third party payment provider it would not be income.   So it shouldn't count against you as income unless you classify it as income.  It would be prudent to keep the 1099K if they issue one in the according tax year records with the record of transfer of funds.  Since this is a pretty broad occurrence, you should not encounter any issues as no money was actually earned by you.