CloudPeeps does not withhold any taxes for either clients or Peeps. It is each user's responsibility to file and comply with any local, state, or federal tax laws.
We always recommend seeking advice from tax and accounting professionals if you have any questions about how to properly file taxes and report payments and earnings.
Peeps operating in the United States and defined by the Internal Revenue Service (IRS) as a "U.S. Person" will need to report any money earned from clients on CloudPeeps.
CloudPeeps does not issue Peeps who are a U.S. Persons with a Form 1099-MISC for any work performed with clients on CloudPeeps.
CloudPeeps does issue Peeps who are a U.S. Persons with a Form 1099-K (different from the Form 1099-MISC) for any work performed with clients on CloudPeeps, pending:
- Over $20,000 has been processed; and
- More than 200 transactions have been processed.
If applicable, Peeps will received a Form 1099-K via postal mail by January 31 of each tax year. The postal address is taken from the information provided in your Stripe Connect account and issued via Payable (a Stripe, Inc. company).
You will not receive a form if you have not processed more than $20,000 on CloudPeeps during a tax year AND completed more than 200 transactions.
The information recorded on the Form 1099-K is the gross transaction volume for the tax year of a Peep's total invoices. This means that it is not the net amount earned, which would take into consideration any refunds or business expenses. Peeps can deduct any refunds, subscription plan costs and any expenses as advised by their own professional accountants to calculate the net amount needed to report as earnings.
Peeps operating outside the United States may be asked to complete a W8BEN or equivalent form based on the country where they are operating.