Why haven't I received my 1099-K form yet?

[AlyssaC17]

It’s Feb 3rd and I still don’t have my 1099 and customer service doesn’t have an answer for me besides they are “behind” 

Isn’t it legally required to have the form my Jan 31st? This is just frustrating. 

[Shay]

Hi @AlyssaC17 

Thank you for sharing your feedback! Shopify has a legally approved extension for providing a 1099-k form, we expect to have it available by end of February. Having the form is not required for submitting your taxes in most cases. The information on the 1099-k is the same information you will have in your store admin already. You can export your sales over time report and your Shopify Payments payouts to calculate the information you need. If you have an accountant, they should be able to assist you with this. 

[fitbody]

Blatant LIE! You ARE required to have these forms to file in the US. This is ridiculous and for my S-Corp, I have to file by MARCH 15th! A 2 week turnaround is not possible!

[Tral]

Same issue here. Seems like they did it last year too. We should not have to calculate what Shopify payments collected. 

[Shay]

Hi @Tral 

We always recommend that you calculate your sales totals to compare to your 1099-K when you receive it. You should always be double checking those numbers and calculating that amount yourself to ensure it matches. If there are any discrepancies on your 1099-K it is your responsibility to correct that before submitting your taxes.  

[Tral]

We would need a 1099K as a baseline to even compare. If we wait till end of Feb to get a 1099K, there is no way accountants can file a tax return by 3/15. Shopify is the only place which has not given a 1099K yet. Upon research it seems to be a common theme. We are paying customers to shopify. 

[Trevor]

@Tral @fitbody @AlyssaC17 

Businesses are allowed to file for extensions on the delivery date, so while the original due date is January 31st, Shopify has been granted an extension to provide these forms to merchants by the end of February. By default, any merchant eligible for a 1099k form will also be granted this extension. 

It is not your responsibility to file this form, Shopify does this on your behalf, you only need a copy of the form for record purposes. This it outlined on the IRS website: https://www.irs.gov/businesses/understanding-your-form-1099-k

You do not need this form on hand to file your taxes. You can compile the data you need using the available reports in your store. More information on that can be found here.  

[Megmo]

It is Feb 27 and still no 1099. Where are they?! Extremely frustrating as a customer 

[uksll]

when is the deadline to file tax for us merchants then? how long is the extension? one month?

[Tral]

I got my 1099k yesterday.  The numbers do no match the process provided to derive the number.  What gives

[Shay]

Hi @fitbody 

I definitely understand your concern. As noted, the information on the 1099-K is the same as the information you have in your store admin currently. You can calculate the information needed independently so you can submit your taxes by your due date. If for any reason there is an issue doing that, or you feel you need to wait for the 1099-K before submitting your taxes, then I recommend contacting the IRS directly to clarify the best next steps. 

As Shopify has received a legal extension of the date we can issue the 1099-K, the IRS will be aware of this and can assist you further in extending your own submission date. 

[Tral]

Please provide the instructions to get the correct number from the admin site. Would love to see if it matches. 

[Shay]

I'd be happy to share those steps with you:

If you would like to replicate the exact calculation of the 1099-K, to confirm the amounts which would have been reported if you qualified, these are the steps you would follow:

If you have received a 1099-K form previously from Shopify, you can export your sales using this method (recommended):

• Go to Shopify Finances → Payouts → Transactions.
• Click on the option to export '1099-K Transactions',
• Export from Jan 1 - Dec 31 for the tax year they're concerned about, to see if the total of column I (Amount) is over the threshold.

If you have not previously received a 1099-K, please use these steps instead:

• Log into your Shopify admin Go to Finances → Payouts → Transactions.
• Then, export your transactions by date. Make sure to set your date range to about 10 days either side of 2023, to make sure you don't miss anything.
• Open the file and sort the sheet 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 2022 or 2024.
• Next, 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. this is done because the 1099-K only reports _gross_ processing which is determined by the value of the charges alone.
• Check that the spreadsheet only contains transactions with a `Type` listed as `Charge` and an `Available on` date of 2023.7. 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.

[swkilm]

Hi! could you help me to? if so please do it here or on my post or message. wherever you prefer

[smo]

Just a heads up for anyone who follows this advice: I tried both methods described in Shay's post (exporting 1099k transactions and the regular transactions-by-date) and the totals are off by a significant amount. So, hard to know what to trust.

My solution was to give the larger number to my accountant so they can create a draft return, then at the last minute we'll plug in the 1099k figure before we submit to the IRS.

[ls2016]

It's the gaslighting in these responses from support that is just truly incredible. This is obviously a huge inconvenience to us as business owners, stop acting like it's business-as-usual. It makes it very clear that your support team doesn't even understand the basics of how small business owners work together with CPAs to file taxes. No, my CPA cannot file my taxes without this form. My taxes have to be filed with my partner's, so this is now holding up both of our businesses. Again, it's fine that there is a delay, but this should have been proactively communicated to us with an acknowledgment of the inconvenience. This gives me very little confidence in Shopify overall, your teams really dropped the ball on this from a communication/customer experience perspective.