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 at least one order in a given tax year will be emailed an End-of-Year Tax Summary. This report includes the following information for your business:
Total sales: the total order amount charged to clients, including groceries, external transactions, shopping & delivery, gratuity, adjustments, and Dumpling platform fees paid by clients. This amount also includes any sales that were later refunded or partially refunded.
Groceries & Expenses: total cost of groceries purchased with the Boss card, platform fees, and processing fees. This also includes refunds and earnings reversals. This does not include any monthly Dumpling subscription fees, instant payout fees, or external transactions.
Instant Payout Fees: any fees you paid for using instant payouts.
Net Earnings: earnings transferred to your Stripe account. This represents Total Sales minus Groceries & Expenses minus any Instant Payout Fees.
2024 tax summary period: includes all transactions available for payout January 1 through December 31, 2024. |
1099-K
The IRS requires that Stripe, our payment processor, provide 1099-Ks to users that exceeded $5,000 in Total Sales in the 2024 tax year. If you meet these requirements, you will be mailed a 1099-K to your legal address on file. If you opted in to receive tax documents electronically, then you will receive any tax documents via email. You can update your legal address in the Boss app (Business tab ➡ Identity section). The 1099-K is typically sent the end of January.
State-Specific Requirements
Some states have lower reporting thresholds for 1099-Ks than the IRS. If you reside in one of those states, you will also receive a 1099-K from Stripe. Dollar amounts are based on Total Sales that your business processed. See Stripe for more details on state-specific requirements.
Helpful Resources
Here are some additional resources to help you prepare for tax season.