1099-K Forms

[Trevor]

Hello!

As we’re currently in tax season, our Tax team is handling a high number of requests to update information on 1099-K forms for store owners. Due to this, there will be a delay in updating your information if you have submitted a request.

We understand that getting this information updated is important and want to assure you that our Tax team is working hard to complete your request in the order that it was received. 

We wanted to take this opportunity to clear up some confusion regarding these forms. The 1099-K form is submitted by Shopify to the IRS if you are using Shopify Payments and meet the following requirements:

• For calendar years prior to (and including) 2022: You receive more than 20,000 USD in gross payments and have more than 200 transactions.
• For calendar year 2023 and later: You receive more than 600 USD in gross payments and have any number of transactions.
• You meet your state's individual thresholds.

If you do not meet the above requirements, then you will not be issued a 1099-K form.

The form is submitted on your behalf by Shopify, so any changes that need to be made can be backdated to the date of the request.

You are not responsible for submitting your 1099-K form. You do not need to wait for the information to be updated on your 1099-K form to file your taxes. 

You can file your taxes without the 1099-K form using the data in your Shopify reports to fill out your tax forms. Any corrections Shopify makes to the 1099-K form can be backdated to the correct date your information changes. 

If you would like to reconcile the amounts listed on your 1099-K, to verify their accuracy, here are the instructions to do so:

1. Log into your Shopify admin and go to Settings > Payment providers > Shopify Payments > View Payouts > Transactions. From here, export your transactions by date. Make sure to set your date range to about 10 days on either side of 2022, to make sure you don't miss anything.
   
   
2. Once you've received and opened your export, you will want to sort your transactions based on column H (`Available on`). This is the date when the money actually changed hands from the customer's bank to your processing account and is the date Shopify uses for tax purposes. Once you have sorted your spreadsheet, delete any rows with an `Available on` date of either 2021 or 2023.
   
   
3. Next, since the 1099-k only reports gross processing, you will need to sort your spreadsheet by column B (`Type`) and remove any rows with a `Type` listed as anything other than `Charge`. This means you will be deleting any rows with a `Type` of Refund, Adjustment, Chargeback, etc.
   
   
4. This will leave your spreadsheet containing only transactions with a `Type` listed as `Charge` and an `Available on` date of 2022.
   
   
5. The final step is to calculate the sum of column I (`Amount`). This will correspond to the value which would have been reported on your 1099-K if you had qualified. The number of rows in the export (minus the heading row) will show you the number of transactions.

More information on the 1099-K form and how to retrieve your form can be found in our help article. If you believe a 1099-K form should be issued to you but you are not seeing one available in your Shopify admin, then please contact Shopify Support for further assistance.