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.

In the United States, your payment settlement entity is required to file a 1099-K form to the IRS if you meet any of the following criteria:

• You receive more than 20,000 USD in gross payments and have more than 200 transactions.
• You meet your state's individual thresholds.

Note

The IRS planned to implement a blanket threshold of $600 USD for all states for the 2022 tax year, but delayed its plans. On November 21, 2023, the IRS announced to delay the new $600 Form 1099-K reporting threshold for third party settlement organizations for calendar year 2023. Refer to the IRS announcement for more information.

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

Note

If you need Shopify to report your income to the IRS under your personal name and Social Security Number (SSN), then set your business type in Shopify Payments as Individual/sole proprietor.

If you need Shopify to report your income to the IRS under your business name and Employer Identification Number (EIN), then set your business type in Shopify Payments as LLC, Corporation, Nonprofit, or Partnership. Learn more about setting up Shopify Payments.

For more information about what business type applies to your store, you need to consult with a tax professional.

The form that you receive from Shopify accounts only for transactions that have been processed by Shopify Payments. Transactions that have been processed by other gateways, such as PayPal, are accounted for on a separate form provided by that gateway.

 Downloading your 1099-K form

Store owners can download a copy of their 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 1099-K tax form.

 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.