I'm prepping all my information to file my taxes this year but I had a question, (bear with me, this is the first time I am filing my taxes only as a business), a majority of my payments made on my shopify store are paypal, and when I received my paypal 1099 form it basically was again, proof of all my transactions made from shopify as well as some from etsy.
Since I received a 1099 from shopify and etsy, would I have to file the 1099 from paypal too? it's the same information, just the paypal form is a malgamation of the two, save maybe a few hundred bucks from in person sales? Wouldn't adding the PayPal form show a misleading amount of "income" on my taxes?
Thank you for reaching out to the Community! I'm happy to provide some guidance on the shops 1099-K to get this resolved. I recommend referring to our Tax Reporting Documentation for a full overview of what's included in the 1099-K, but would be limited to transactions processed by Shopify Payments.
As the 1099-K form issued by Shopify is only for transactions processed through Shopify Payments, it would not include transactions processed through other gateways, such as PayPal. These forms would be accounted for separately and can be accessed from the payment provider directly. Due to this, I would recommend Contacting PayPal for further guidance!
It's also recommended to consult with a local tax authority or a tax professional to verify that you have collected the required forms to file taxes accordingly.
Please let me know if you have any other questions.