1099-K Received from Square for Two States

[emlakerr]

In 2025, I moved from Virginia to Michigan in April. I am a small business that uses Square for one of their payment processes with customers. Square is required to send a 1099-K to all users who processed $600 or more card transactions and the state on file is District of Columbia, Maryland, Massachusetts, Vermont or Virginia. I made well over $600 in January, February, March and April while I was seeing customers in Virginia, so Square is correct in sending a 1099-K.

However, in the hectic ness of the move from Virginia to Michigan, I had forgotten to change my business address to Michigan, and I started seeing clients in Michigan in June through November 2025. So the 1099-K shows the address as the Virginia business address only, but its also a combined total of what I made in Virginia and Michigan combined.

For reference, below are the guidelines for when Square sends a 1099-K to users:

“You qualify for a 1099-K when:

• You processed $600 or more card transactions and the state on file is District of Columbia, Maryland, Massachusetts, Vermont or Virginia, or

• You processed $1,200 or more in card transactions and the state on file is Missouri, or

• You processed more than $1,000 and more than 3 card transactions and the state on file is Illinois, or

• You processed more than $20,000 and more than 200 card transactions and the state on file is any other state than mentioned above.”

Per what is mentioned above, I would not have had a 1099-K for Michigan.

1) Would I still use the 1099-K that was sent by Square that has the Virginia business address only, and combined income for both Virginia and Michigan?

2) Would I need to split the income amount and type it into TurboTax as though they are two separate forms? (Even though I would not have received a 1099-K for Michigan per the guidelines above?)

3) Do I need to ask for a corrected 1099-K from Square, and if so, would they only resend for the Virginia income only?

Unfortunately when contacting Square about this, they couldn’t provide a customized response and just said:

”Since tax situations can vary based on individual circumstances, we encourage you to refer any specific tax questions or concerns about your Form 1099-K reporting to your tax accountant or advisor for the most accurate guidance.

You can also review how the amounts on your 1099-K are calculated by visiting the link below: 1099-K Overview.”

4) Also, even if I had changed my business address to Michigan back in April, I would think I would have the same problem of showing a 1099-K with a Michigan business address that also shows a combined income from Virginia and Michigan, correct?

[PatriciaV]

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.