Solved! Go to the solution
Julie here from Shopify Support.
This is a great question, and especially relevant given the fact that we're heading into tax time.
In the United States, if you process more than $20,000 and have more than 200 transactions, then you are required to submit a 1099-K form to the IRS. If you meet these requirements, then Shopify will automatically generate the 1099-K form and submit it to both you and the IRS. This can be found in Settings > Payment providers > Shopify Payments > View payouts > Documents. We also have a help doc on how you can access this report here.
Keep in mind that this only applies to gross sales generated through Shopify Payments; if you meet these requirements for orders processed via another payment gateway, then you'll just need to check in with your other payment providers to find out how you can obtain that form. I did, however, manage to find some information from PayPal regarding 1099-K forms and how they can be obtained. You can check that out here.
Aside from the 1099-K form, Shopify also gives you access to tax reports. The Sales finance report, for example, can help with your sales tax reporting and includes the values that you'll most likely need while filing your taxes, like gross and net sales generated during a specific timeframe. This report can be exported as a CSV file; if you're working with an accountant, it's a great idea to provide them with a copy of this report.
Ultimately, I recommend reaching out to PayPal directly if you are needing a 1099-K from them and they should be able to point you in the right direction. If you have any other specific questions on tax reporting, then my advice would be to reach out to a tax expert who is qualified to provide you with guidance on how to best proceed.
I hope this helps!
Julie | Social Care @ Shopify
- Was my reply helpful? Click Like to let me know!
- Was your question answered? Click Accept as Solution