Tax reporting with Shopify Payments for the United States

As a merchant, you're required to follow all applicable regulations, including tax reporting. Depending on your jurisdiction, Shopify Payments might also be required to report your sales to the local tax authorities. You're responsible to consult with local tax authorities or a tax professional to verify the regulations that apply to you.

Criteria for receiving a Form 1099-K

Shopify is required to submit a Form 1099-K to the IRS for transactions that you process through Shopify Payments. You might be required to report these values when you file your income taxes. This form is generated by Shopify Payments and it's provided to you and to the IRS on an annual basis. Only store owners can access information that's related to the Form 1099-K.

In the United States, the tax year covers the period of January 1 in a given year, until December 31 of that year. Your payment settlement entity is required to file a Form 1099-K to the IRS if you meet any of the following considerations apply to your account:

• For Tax Year 2023, the IRS threshold to qualify for a Form 1099-K was processing more than $20,000 USD in funds and processing at least 200 transactions. If you meet this threshold requirement, the Form 1099-K is available in your admin.
• Starting with Tax Year 2024, the IRS thresholds are different. To qualify for 1099-K reporting, you must process more than $5,000 USD in gross transactions.
• You meet your state's individual thresholds.

The form that you receive from Shopify accounts only for transactions that have been processed by Shopify Payments.

Note

If you set up Shopify Payments with your business type set to Individual, then Shopify reports your income to the IRS under your personal name and Social Security Number (SSN).

If you set up Shopify Payments with your business type set to Sole Proprietor or Single Member LLC, then Shopify reports your income to the IRS under your personal name and Social Security Number (SSN). If the income should be reported under your business name and Employer Identification Number (EIN), then you can reach out to Shopify Support.

If you set up Shopify Payments with any other business type, then Shopify reports your income to the IRS under your business name and Employer Identification Number (EIN).

Learn more about setting up Shopify Payments.

Updating your tax information

Your tax information is reviewed in advance of your Form 1099-K being issued. If there's information missing or information that cannot be verified, then you receive a notification via email, admin alert, and banner in your Shopify admin where you can begin updating your information.

Steps

1. From the email, admin notification, or banner in your Shopify admin, click Update details.
2. On the Update details page, review the fields containing errors and update them with the correct information.
   
3. Click Save.
4. Click Confirm.
   
5. Click Submit for verification.

If the information you add cannot be verified, then you receive an email, notification, and a banner in your Shopify admin to repeat the steps above with the correct information. If you exceed the allowed number of attempts, then you must contact Shopify Support for assistance in updating your information.

If you fail to update your tax information, or contact Support for assistance in updating your information, then your payouts might be paused and further restrictions may take place until your information can be verified.

Downloading your Form 1099-K

If you are the store owner, then you can download a copy of your Form 1099-K in the Settings > Payments of your Shopify admin.

Desktop

1. From your Shopify admin, go to Settings > Payments.

2. In the Shopify Payments section, click View payouts.

3. Click Documents.

4. Click Download PDF next to the Form 1099-K.

iPhone

1. From the Shopify app, tap the … button, and then tap Settings.
2. In the Store settings section, tap Payments.
3. In the Shopify Payments section, tap View payouts.
4. Tap Documents.
5. Tap Download PDF next to the Form 1099-K.

Android

1. From the Shopify app, tap the … button, and then tap Settings.
2. In the Store settings section, tap Payments.
3. In the Shopify Payments section, tap View payouts.
4. Tap Documents.
5. Tap Download PDF next to the Form 1099-K.

Downloading your 1099-K transactions

If you need to refer to a list of transactions that will be accounted for in your 1099-K form, then store owners can download them in CSV format.

Desktop

1. From your Shopify admin, go to Settings > Payments.

2. In the Shopify Payments section, click View payouts.

3. Click Transactions.

4. Click Export.

5. Select 1099-K Transactions.

6. Choose the date range of transactions to download.

7. Click Export items.

iPhone

1. From the Shopify app, tap the … button, and then tap Settings.
2. In the Store settings section, tap Payments.
3. In the Shopify Payments section, tap View payouts.
4. Tap Transactions.
5. Tap Export.
6. Select 1099-K Transactions.
7. Choose the date range of transactions to download.
8. Tap Export items.

Android

1. From the Shopify app, tap the … button, and then tap Settings.
2. In the Store settings section, tap Payments.
3. In the Shopify Payments section, tap View payouts.
4. Tap Transactions.
5. Tap Export.
6. Select 1099-K Transactions.
7. Choose the date range of transactions to download.
8. Tap Export items.