Does Square charge you and make you pay taxes if you make a transaction using cash?

[SM14]

Does Square charge you and make you pay taxes if you make a transaction using cash? I want to know because I am a 15 year old who just started using Square and I dont wanna get charged now for using cash. 

[LocavoreStore · Accepted solution]

Making you pay taxes is not really something that Square does. If you are accepting credit cards, then yes (sort of). Square will report your deposits to the IRS. It's then up to you to pay applicable taxes on that.

As far as cash transactions go... No. You could hypothetically ring up a $10,000,000 item for fun, tender it as a cash payment, and go about your day as if it never happened.

If you are selling things to people who plan to write off the transaction from their taxes (maybe it was a business expense), then they will have to report how much money they paid to you. It's up to the IRS to make you pay taxes on that... Not Square. 

[puka]

Welcome to the Community @SM14!

Great question! As @LocavoreStore stated, we do not withhold any taxes on your transactions. You are responsible for tracking and reporting your income to the IRS come tax season. To make sure your Square account is properly set up to accurately report your transactions, you can check out 1099-K Tax Reporting Information.

[Hank2hank]

Make payment for my phone