Understanding Tax Liability with TrainingPeaks Payments
TrainingPeaks Payments simplifies the financial side of your coaching business by automating complex tax requirements. When you use our Stripe-integrated payment system, tax handling is split into two categories: Sales Tax Remittance and Income Reporting.
Sales Tax: We Collect and Remit for You
TrainingPeaks acts as a Marketplace Facilitator. In most jurisdictions, this means the legal responsibility to calculate, collect, and send sales tax to the state government shifts from you to us.
How it works: When an athlete pays for your services, TrainingPeaks calculates the correct tax rate based on their location, adds it to the transaction, and sends it directly to the appropriate tax authority.
The Benefit: You don't need to register for sales tax permits or file monthly sales tax returns for revenue processed through TrainingPeaks Payments.
Income Tax: 1099-K Reporting
While we handle sales tax, your coaching fees are still considered taxable income. Because TrainingPeaks Payments is powered by Stripe, your income reporting follows standard IRS payment processor guidelines.
The 1099-K Form: Stripe will issue a Form 1099-K if your account meets the federal or state-specific gross volume and transaction thresholds for the calendar year.
Your Responsibility: You (or your accountant) are responsible for reporting this gross income on your annual tax filings. You can access your full transaction history and tax documents anytime via your Stripe Express dashboard.
Note: These automated tax features apply specifically to transactions processed through TrainingPeaks Payments. If you collect fees via check, cash, or other third-party apps, you remain responsible for both the sales tax and income reporting for those funds.