1099/income reported v/s invoices marked as paid

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Excursionist
17 0 13

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
514 34 73

This is an accepted solution.

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
17 0 13

@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
514 34 73

This is an accepted solution.

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
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New Member
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Hi, there. I just created a draft order last month, and I had the same question. However, I checked my Gross Sales report, the draft order is listed there (I marked it paid). So, is that mean this sale will show up on 1099?

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Shopify Staff
Shopify Staff
514 34 73

@BelleY wrote:

Hi, there. I just created a draft order last month, and I had the same question. However, I checked my Gross Sales report, the draft order is listed there (I marked it paid). So, is that mean this sale will show up on 1099?


Hi, @BelleY.

 

Sophia here from Shopify. Welcome to the Shopify Community!

If the draft order was manually marked as paid, the system will assume that you accepted payment outside of Shopify or on another order if the draft was just an adjustment of some sort. The 1099-K form only includes gross sales processed through Shopify Payments (excluding fees, refunds and adjustments).

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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