Does the 1099 threshold include refunds?

Highlighted
Shopify Partner
12 0 0

I understand that we get a 1099 for stores that take in over $20k in stripe payments. I'm wondering if you take in for example $20,100 and then had $200 in refunds, which reduces you to $19,900.... will you still get a 1099?

0 Likes
Highlighted
Shopify Staff
Shopify Staff
210 1 24

Hi Stephanie, 

Jamie here from Shopify. All US Shopify merchants using Shopify Payments with over $20,000 in gross sales and over 200 transactions are required to submit a 1099k form which will be provided by Shopify. This is based on gross sales, not net, and will not factor in refunds. Using your example you would indeed receive a 1099k. 

I hope that helps! 

0 Likes
Highlighted
Shopify Partner
12 0 0

Ok thanks! And the $20k threshold, is that based on total store sales, or JUST the orders taken with shopify payments?

 

Also, is the threshold on a per store basis, or is it per SSN/EIN? Like if someone owns multiple stores, do those get added all together?

0 Likes
Highlighted
Shopify Staff
Shopify Staff
210 1 24

Hi Stephanie, 

This is only based off of orders placed using Shopify Payments, and does not include other payment gateways/methods. Each store is unique to Shopify Payments, and we do not lump together users/businesses that have multiple stores into one account at this time. 

Cheers!

1 Like