Does Shopify 1099-K include money reported on the PayPal 1099-K?

LiveLoveLocal
Visitor
1 0 0

If my Shopify 1099-K shows a Gross Income of $10,000 and my PayPal 1099-K Gross Income shows $4,000, does that mean that my Gross Income is the combined $14,000 or just the Shopify $10,000?

Also, is the Shopify 1099-K showing payouts (which deducts fees) or gross sales and then I deduct the fees? 

Thanks for the help.

Replies 5 (5)

Blair
Shopify Staff
1967 261 233

Hey @LiveLoveLocal

 

Thank you for reaching out to the Community. Great question, the 1099-K form from Shopify reports transactions processed through Shopify Payments only. In this case, other payment processors such as PayPal, would be responsible for producing 1099-K for transactions they handled. For more information on this, you can refer to our Tax Reporting documentation as it touches on this further.

 

As for what the 1099-K form reports on, it includes gross transaction value. It does not factor in refunds, chargebacks, credit card processing fees, adjustments or any bills paid with using Shopify Balance.

 

Please let me know if you have any other questions!

Blair | Shopify 
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valuebeltsplus
Tourist
4 0 1

If Shopify lists $500 in sales on the monthly report of sales........is that amount also included with the sales PayPal reports to sellers who have accounts with PayPal?..........for example. If sale are reported by Shopify of $1,500 and $500 is via PayPal, does PayPal also report the $500 via their monthly financial report on sales?

bubblelounge
Excursionist
14 0 10

Hi, 

How do I know if my Paypal W2 includes any Shopify Payments so I don't double report? I also did not find any additional information on the link you recommended (tax documentation) regarding this.

Kati Graham
valuebeltsplus
Tourist
4 0 1
This is what I call "SHIT" service..........ask a question and you get
referred to a link that will take hours to read.
Vonda_Youngkin
Explorer
77 0 55

Are credit card processing fees recorded in the Shopify monthly billing statements?