Hi @Lonwat. Square has been built for businesses, whether incorporated or not. As such, they are required by law to report all card processing on a 1099. For what you want, the best thing to set up is a Cash App account, or Venmo, or something similar.
Keep in mind that most likely, even those will generate 1099s eventually, because so many people use those to hide income and avoid paying their rightful share of taxes. However, even if Venmo eventually is required to issue 1099s to everyone, as long as you keep good, detailed records about why someone paid you you’ll be able to exclude payments that are truly reimbursements and not taxable income.
Another reason why you don’t want to use Square is that Square will charge you fees to charge your friends’ cards. That’s the cost of being in the credit card business. Even apps like Venmo will charge your friends a fee to used credit cards instead of debit cards and/or bank accounts, and those fees are not inexpensive. Because of how federal banking laws are structured, what you want to do is not cheap and definitely not free.
Hi @Lonwat. Square has been built for businesses, whether incorporated or not. As such, they are required by law to report all card processing on a 1099. For what you want, the best thing to set up is a Cash App account, or Venmo, or something similar.
Keep in mind that most likely, even those will generate 1099s eventually, because so many people use those to hide income and avoid paying their rightful share of taxes. However, even if Venmo eventually is required to issue 1099s to everyone, as long as you keep good, detailed records about why someone paid you you’ll be able to exclude payments that are truly reimbursements and not taxable income.
Another reason why you don’t want to use Square is that Square will charge you fees to charge your friends’ cards. That’s the cost of being in the credit card business. Even apps like Venmo will charge your friends a fee to used credit cards instead of debit cards and/or bank accounts, and those fees are not inexpensive. Because of how federal banking laws are structured, what you want to do is not cheap and definitely not free.
