Setting up automated filing with Shopify Tax

Caution

This guide is for informational purposes only, and isn't intended to replace professional tax advice. Tax laws change frequently. If you have further questions about your tax returns, then you should contact local tax authorities or a tax professional. It's your responsibility to consult with tax authorities or tax professionals to ensure that you file and remit your taxes correctly.

After reviewing the considerations for automated filing, you can start setting up your returns. To start filing taxes automatically, you must first complete your account details and set up your state tax returns.

Complete account details

To do any of the following, a staff member must have the Taxes and duties permission and at least one Finance permission:

• access the Automated filing page
• act as a point of contact for notifications related to filing
• act as a legal signee for tax and other legal documents

If the desired staff member can't perform any of these actions, then update their permissions to include the necessary permissions.

To file your tax returns, complete your setup for each state where you collect sales tax. Returns must be set up by the 20th of the month before your next filing is due. If you need to file quarterly or annual returns, then the deadline is the 20th of the last month in that sales period.

Steps:

1. Ensure that you complete your account details and set up your tax returns before the filing deadline. If your setup won’t be completed by the 20th of the month prior to the due date of your next filing, then consider filing your return manually.
2. From the Shopify admin, go to Finance > Tax filing.
3. Click Activate.
4. Provide your account details:
   1. Review your business details to ensure that they're correct. If you need to update your business details, then contact Shopify Support.
   2. Select a payment method. This account is shared with the appropriate state tax authorities for payments or refunds associated with your tax returns. The list of available accounts comes from any existing Shopify Payments or Shopify Balance account information.
   3. Select a point of contact. The point of contact is the staff member that receives any notices related to filing, such as notifications regarding review periods or issues that need to be resolved in order to file on time. The list of available contacts is derived from the staff accounts in your store.
   4. Select a legal signee. The legal signee is the staff member responsible for signing tax and other legal documents. The list of available contacts comes from the existing staff accounts in your store.
5. Click Save.
6. Carefully review the terms and conditions for using automated filing, and then click Agree.

After you've set up automated filing, you can set up your tax returns for the states where you pay tax.

Set up tax returns

Most state tax returns are set up by using a standard set of steps. If you need to set up a tax return for the following states, then perform the steps specific to those states:

• California
• Colorado
• Maryland
• New York
• Rhode Island
• Washington

Caution

When you set up your tax returns, ensure that the information that you enter is identical to your account with the appropriate Department of Revenue (DOR). Returns with inaccurate information can't be filed.

To file your tax returns, you need to complete your setup for each state where you collect sales tax and set up two-step verification for automated filing. Returns must be set up by the 20th of the month before your next filing is due. If you need to file quarterly or annual returns, then the deadline is the 20th of the last month in that sales period.

Set up a standard tax return

1. Ensure that your setup will be complete before the filing deadline. If your setup won’t be completed by the 20th of the month prior to the due date of your next filing, then consider filing your return manually.
2. From the Shopify admin, go to Finance > Tax filing.
3. Click Set up tax returns.
4. Select a state.
5. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
6. If there's more than one form, then click Add forms and select the filing frequency for each form.
7. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
8. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
9. Click Save.

After setting up your tax return, you need to set up two-step verification in your state's filing portal to give Shopify secure access to your account.

Set up two-step verification for automated filing

1. On the page for your state tax return in the Shopify admin, copy the email address in the Two-step verification section.
2. Log in to the state's tax website.
3. Click Manage my profile.
4. Click Profile.
5. In the Security section, click Change Two-Step Setting.
6. In the Email section, click Add Email.
7. Paste the email address provided in the Shopify admin into the email field.
8. Click Save. This generates a security code, which is emailed to you and to your point of contact.
9. After you receieve the email with your code, copy the code and paste it in the Verify Security Code field.
10. Click Confirm.

After you've set up a state, you can then repeat as necessary to set up additional states where you collect sales tax.

Set up a California tax return

1. Ensure that your setup will be complete before the filing deadline. If your setup won’t be completed by the 20th of the month prior to the due date of your next filing, then consider filing your return manually.
2. From the Shopify admin, go to Finance > Tax filing.
3. Click Set up tax returns.
4. Select a state.
5. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
6. If there's more than one form, then click Add forms and select the filing frequency for each form.
7. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
8. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
9. Click Save.

After setting up your tax return, you need to set up two-step verification in California's filing portal to give Shopify secure access to your account.

Set up two-step verification for automated filing in California

1. On the page for your state tax return in the Shopify admin, copy the email address in the Two-step verification section.
2. Go to the California DOR website and log in to your account.
3. Click the Settings icon.
4. In the Logon section, click Edit.
5. In the Authentication section, select Send text or email from the Authentication type drop-down menu.
6. In the Email field, enter the email address that you copied from the Shopify admin.
7. Add your contact information in the Country, Wireless Carrier, and Wireless Phone fields.
8. Click Save.

After you've set up a state, you can then repeat as necessary to set up additional states where you collect sales tax.

Set up a Colorado tax return

1. Ensure that your setup will be complete before the filing deadline. If your setup won’t be completed by the 20th of the month prior to the due date of your next filing, then consider filing your return manually.
2. From the Shopify admin, go to Finance > Tax filing.
3. Click Set up tax returns.
4. Select a state.
5. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
6. If there's more than one form, then click Add forms and select the filing frequency for each form.
7. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
8. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
9. Click Save.

After setting up your tax return, you need to set up two-step verification in Colorado's filing portal to give Shopify secure access to your account.

Set up two-step verification for automated filing in Colorado

1. Authorize Shopify Tax to access your account:
   1. On the page for your state tax return in the Shopify admin, copy the email address in the Two-step verification section.
   2. Go to the Colorado DOR website and log in to your account.
   3. Click Manage My Profile.
   4. In the Security section, click Change Two-Step Settings.
   5. In the Email section, click Add Email.
   6. Enter the email address from the Shopify admin, and then click Save.
   7. The email address for the point of contact will receive a message with a security code. Copy the security code.
   8. Enter the security code in the Verify Security Code field in the Colorado DOR website.
   9. Click Confirm.
2. Set up sales tax locations:
   1. Go to the Colorado DOR website and log in to your account.
   2. Click Add or close sales tax locations.
   3. Click Add non-physical locations.
   4. Click Select all.
   5. Click Submit.
3. Upload TXT file from Colorado DOR site.
   1. From the Colorado DOR website, go to Sales and Use Tax
   2. Click Find Sales and Use Tax rates.
   3. Click View Business Location rates.
   4. Enter your Colorado account number to see a full list of locations.
   5. Click Export to download a .txt file to your computer.
   6. From your Shopify admin, go to the Tax Filing section, and then find your Colorado state setup.
   7. Click Add file, and then select the .txt file that you downloaded.
4. Click Save.

After you've set up a state, you can then repeat as necessary to set up additional states where you collect sales tax.

Set up a Maryland tax return

1. Ensure that your setup will be complete before the filing deadline. If your setup won’t be completed by the 20th of the month prior to the due date of your next filing, then consider filing your return manually.
2. From the Shopify admin, go to Finance > Tax filing.
3. Click Set up tax returns.
4. Select a state.
5. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
6. If there's more than one form, then click Add forms and select the filing frequency for each form.
7. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
8. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
9. Click Save.

After setting up your tax return, you need to set up two-step verification in Maryland's filing portal to give Shopify secure access to your account.

Set up two-step verification for automated filing in Maryland

1. On the page for your state tax return in the Shopify admin, copy the email address in the Two-step verification section.
2. Go to the Maryland DOR website and log in to your account.
3. In the navigation bar, click Profile information.
4. Select User Profile.
5. In the Contact Information section, add your contact information in the Daytime Phone, Extension, and Mobile Phone fields.
6. In the Email and Confirm email fields, enter the email address that you copied from the Shopify admin.
7. Click Save Profile.

After you've set up a state, you can then repeat as necessary to set up additional states where you collect sales tax.

Set up a New York tax return

1. Ensure that your setup will be complete before the filing deadline. If your setup won’t be completed by the 20th of the month prior to the due date of your next filing, then consider filing your return manually.
2. From the Shopify admin, go to Finance > Tax filing.
3. Click Set up tax returns.
4. Select a state.
5. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
6. If there's more than one form, then click Add forms and select the filing frequency for each form.
7. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
8. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
9. Click Save.

After setting up your tax return, you need to set up two-step verification in New York's filing portal to give Shopify secure access to your account.

Set up two-step verification for automated filing in New York

1. Authorize Shopify Tax to access your account:
   1. On the page for your state tax return in the Shopify admin, copy the email address in the Two-step verification section.
   2. Go to the New York DOR website and log in to your account.
   3. Click Services.
   4. In the Business section, click User Summary.
   5. Click Add user.
   6. Complete the User information section, using the email address that you copied from the Shopify admin.
   7. In the Login information section, create a username and a temporary password.
   8. Authorize user permissions by clicking Yes.
   9. Click Yes, and then select the checkbox next to Sales Tax File & Pay.
   10. Click Save & Continue.
   11. Select Not manage users, and then click Save & Continue.
   12. Ensure that a user has been successfully added, and then log out.
2. Create and share permanent credentials for the new user:
   1. Go to the New York DOR website and log in to your account, using the new temporary username and password.
   2. Create three security questions, and then click Save & Continue.
   3. Create a new password.
   4. Copy the new username and password.
   5. In the Shopify admin, enter the new username and password in the automated filing return setup page.

After you've set up a state, you can then repeat as necessary to set up additional states where you collect sales tax.

Set up a Rhode Island tax return

1. Ensure that your setup will be complete before the filing deadline. If your setup won’t be completed by the 20th of the month prior to the due date of your next filing, then consider filing your return manually.
2. From the Shopify admin, go to Finance > Tax filing.
3. Click Set up tax returns.
4. Select a state.
5. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
6. If there's more than one form, then click Add forms and select the filing frequency for each form.
7. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
8. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
9. Click Save.

After setting up your tax return, you need to set up two-step verification in Rhode Island's filing portal to give Shopify secure access to your account.

Set up two-step verification for automated filing in Rhode Island

1. On the page for your state tax return in the Shopify admin, copy the email address in the Two-step verification section.
2. Go to the Rhode Island DOR website and log in to your account.
3. In the navigation bar, click Profile information.
4. Select User Profile.
5. In the Contact Information section, add your contact information in the Daytime Phone, Extension, and Mobile Phone fields.
6. In the Email and Confirm email fields, enter the email address that you copied from the Shopify admin.
7. Click Save Profile.

After you've set up a state, you can then repeat as necessary to set up additional states where you collect sales tax.

Set up a Washington tax return

1. Ensure that your setup will be complete before the filing deadline. If your setup won’t be completed by the 20th of the month prior to the due date of your next filing, then consider filing your return manually.
2. From the Shopify admin, go to Finance > Tax filing.
3. Click Set up tax returns.
4. Select a state.
5. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
6. If there's more than one form, then click Add forms and select the filing frequency for each form.
7. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
8. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
9. Click Save.

After setting up your tax return, you need to set up two-step verification in Washington's filing portal to give Shopify secure access to your account.

Set up two-step verification for automated filing in Washington

1. On the page for your state tax return in the Shopify admin, copy the email address in the Two-step verification section.
2. Go to the Washington DOR website and log in to your account.
3. Click Update your SAW profile.
4. Click Profile.
5. In the Additional Contact Information for Security section, enter the email address that you copied from the Shopify admin in the Additional Email Address field.
6. Optional: Enter your phone number in the Mobile Phone Number field.
7. Click Update.

After you've set up a state, you can then repeat as necessary to set up additional states where you collect sales tax.