Hi @James_Dubay
Thanks for joining in!
I understand that you are having some difficulty trying to match the 1099-K gross amounts to a report in Shopify. I’d be happy to elaborate on this. As explained in my last reply, the reports in your Shopify analytics won’t necessarily exactly match the 1099-K, as it is two separate systems that use different data.
If you would like to manually confirm the amounts in your 1099-K, then you can replicate the exact calculations by following these steps. Some basic spreadsheet skills will be required, and you can use a free editor such as Google Sheets to follow along:
- From your Shopify admin, navigate to Finances > Payouts > Transactions.
- You will need to export your transactions by date (making sure to set your date range to about 10 days either side of 2022, just to make sure you don’t miss anything).
- Open the exported 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 2021 or 2023.
- After this, sort the spreadsheet by column B (‘Type’) and remove any rows you can see with a ‘Type’ listed as anything other than ‘Charge’. What this means is you will be deleting any rows with a ‘Type’ of; Refund, Adjustment, Chargeback, etc. because these are not included in the 1099-K calculations.
- At this stage, it’s important to double check that the spreadsheet only contains transactions with a ‘Type’ listed as ‘Charge’ and an ‘Available on’ date of 2022.
- Finally, you can calculate the sum of column I (‘Amount’). This number should correspond exactly to the value which is reported on your 1099-K. The number of rows in the export (minus the heading row) will also show you the total number of transactions.
The results from this exercise should match the figures in your 1099-K, however if they don’t then you can feel free to contact our support team here and we can check in with our Tax Team for clarification if necessary.