This article is for informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax advisors.
Earnings that you receive using Dumpling are generally subject to taxes. While we can't offer tax advice, we've compiled some helpful information here.
End-of-Year Tax Summary
Business owners that closed more than 1 order in a given tax year will be emailed an End-of-Year Tax Summary by January 31st. This report includes the following information for your business:
Total Invoices: total invoices charged to clients, including groceries, shopping & delivery, gratuity, adjustments, and Dumpling platform fees. This amount also includes invoices that were later refunded.
Groceries and Fees: total cost of groceries and Dumpling platform and processing fees. This also includes any refunds. This does not include any monthly Dumpling subscription fees.
Net Earnings: total earnings that are available for payout, representing Total Invoices less Groceries and Fees.
Total Transactions: total count of transactions processed with Dumpling, including orders closed and additional gratuity added.
Tax summary period: includes all transactions processed and available for payout January 1 through December 31. Orders closed Dec 28-31 are typically available for payout the following year
The IRS requires that Stripe, our payment processor, provide 1099-Ks to users that exceeded $20,000 in Total Invoices AND 200 transactions in the previous tax year. If you meet these requirements, you will be mailed a 1099-K to your legal address on file. You can update your legal address in the Boss app (Business tab ➡ Identity section). The 1099-K is typically mailed end of January.
Some states have lower reporting thresholds for 1099-Ks than the IRS. If you reside in one of these states, you will also receive a 1099-K from Stripe. Dollar amounts are based on Total Invoices that your business processed.
$1,000 and 4 transactions
For more state specific requirements, see Stripe.
Here are additional resources to help you prepare for tax season.
HELPFUL TAX TIPS TO REPORT EARNINGS AND EXPENSES FROM DUMPLING, by C.W. Kimple, CPA
Dumpling Business Owner Year End Tax Tips, by Pastenieks, Bucheli & Falasco, LLP