1099/income reported v/s invoices marked as paid

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Excursionist
14 0 5

Just want to double check, but am I correct that if I manually enter an order, do not accept payment, but mark as paid, this will not be counted in my year end 1099 correct?

 


In other words, Shopify sends a 1099 for only the payments handled through Shopify Payments only, correct? 

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Shopify Staff
Shopify Staff
280 27 42

Hi, @Kevin5801!

You're correct. The 1099-K form will only include your gross sales processed through Shopify Payments. The form will not include fees, refunds and adjustments, or sales from any other gateway. When a draft order is manually marked as paid, the system assumes that payment was accepted on another order or outside of Shopify entirely.

Let me know if that clears things up! I'm happy to answer any other questions you may have.

Sophia | Social Care @ Shopify
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Excursionist
14 0 5

@Sophia TYVM
I thought it worked that way, just wasn't sure with the whole POS factor though... 

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Shopify Staff
Shopify Staff
280 27 42

No worries. @Kevin5801!

The POS will follow the same rules. As long as the order doesn't go through the Shopify Payments gateway, it won't be included in your 1099-K.

Sophia | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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