Do you know if the Shop Pay Installments sends out a separate 1099k?
Topic summary
Merchants are experiencing discrepancies between their Shopify admin revenue reports and the amounts shown on their 1099-K tax forms. The 1099-K reports gross transaction value from Shopify Payments only, excluding refunds, chargebacks, fees, and transactions from other payment gateways like PayPal or cash sales.
Key clarifications:
- The form includes Shop Pay Installments (non-interest bearing) but excludes interest-bearing transactions
- Gift card payments are not included in the 1099-K
- Discounts applied before payment processing are reflected in the reported amount
Manual reconciliation method:
- Export transactions from Finances > Payouts > Transactions
- Filter by ‘Type’ = ‘Charge’ only (remove refunds, adjustments, chargebacks)
- Critical correction: Use Column A (Transaction Date), not Column H (Available on date), to filter for the tax year
- Sum Column I (Amount) to match the 1099-K total
A community member identified that Shopify’s official instructions incorrectly referenced Column H when Column A is actually used for 1099-K calculations. Several merchants report significant discrepancies (mid-five figures in one case) and recommend contacting Shopify support directly if reconciliation attempts fail. Third-party tools like LinkMyBooks are suggested to simplify the process.