2024 PayPal and Shopify 1099

Shopify Discussion

Topic summary

A merchant received separate 1099-K forms from both Shopify and PayPal for 2024 and wants to avoid double-reporting income.

Key clarification:

  • Shopify’s 1099-K typically includes only transactions processed through Shopify Payments
  • PayPal transactions processed independently are reported separately by PayPal
  • Each 1099-K should be treated as distinct income sources

Important update (October 2024):

  • As of October 20, 2024, PayPal payments began processing through Shopify’s system
  • Orders paid via PayPal after this date are now included in Shopify’s gross sales reporting

Recommended action:

  • Review the “1099-K transactions” report in Shopify’s order transaction export to verify exactly which payments are included
  • For transactions before October 2024: treat both 1099-Ks separately
  • For transactions after October 2024: PayPal orders may already be reflected in Shopify’s 1099-K

The discussion remains somewhat open as the original poster sought confirmation beyond AI-generated advice.

Summarized with AI on October 24. AI used: claude-sonnet-4-5-20250929.
1

it seems this question has been asked - but we never get a good or straight answer.

This is my first time receiving a 1099 from Shopify - however during 2024 - Shopify was also processing PayPal transactions. I also received a 1099 from PayPal.

I don’t want to report more than I actually made.

So my question…

Does my Shopify 1099 include the gross sales that were paypal transactions?

If yes - then I make sure to subtract my PayPal 1099 reported amount

If No - then I treat bother 1099s separately and report those amounts - minus my expenses.

Someone with knowledge of this topic please respond

Thank you

2

ChatGPT says: - but I want to make sure.

No, Shopify’s 1099-K does NOT include gross sales processed by PayPal. Here’s why:

How Shopify Reports 1099-K Sales- Shopify 1099-K only includes transactions processed through Shopify Payments.

  • If you accept payments via PayPal, Square, Stripe, or another third-party processor, those transactions are NOT included in Shopify’s 1099-K.
3

As of October, PayPal payments/orders is now being processed and paid through shopify. We turned off PayPal processing on their end. So for our records, as of October 21, 2024, orders paid via PayPal are reflected in the gross sales.

When you go to print order transactions, you are given the option to print 1099-k transactions, you can view on that report what is included on your shopify 1099-k.

4

October 2024 that is.