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Form 1099-K tax reporting with Shopify Payments for the United States

In the United States, tax laws require Payment Settlement Entities (PSEs) such as Shopify Payments to file a Form 1099-K with the Internal Revenue Service (IRS) for merchants who meet annual reporting thresholds. Where applicable, PSEs must also report to state revenue authorities.

If your business accepts online or in-person payments, then you're responsible for reporting this income on your tax returns. You must understand how to use your Form 1099-K to comply with reporting requirements. Failure to comply can result in penalties and fines from your tax authorities.

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

This guide explains what a Form 1099-K is, what the criteria for receiving a Form 1099-K are, and how to download the form from your Shopify admin.

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Understanding your Form 1099-K

Form 1099-K is an informational document required by the United States IRS for accounts that meet specific criteria. The form summarizes the Shopify Payments transactions of an account and is provided to both you, the account owner, and the IRS to assist you in reporting your taxes. Shopify Payments issues a Form 1099-K to all Shopify Payments users based in the United States that accept payments, regardless of their business type or activity, and that have met that year's criteria.

For example, if you run an online business and use Shopify Payments to receive payments from customers, then Shopify provides a Form 1099-K if your transactions meet the reporting threshold in that year. The form reports the gross amount of payments that you received through Shopify Payments during the year.

For more help understanding your 1099-K, refer to the IRS guide on understanding your Form 1099-K.

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 is provided to you and to the IRS annually. Store owners and staff with the View tax documents permission 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 any of the following considerations apply to your account:

  • For Tax Year 2025, the IRS threshold to qualify for a Form 1099-K was processing more than $20,000 USD in funds and processing more than 200 transactions. If you met the threshold requirement for 2025, then the Form 1099-K is available in your Shopify admin.
  • For Tax Year 2024, the IRS threshold to qualify for a Form 1099-K was processing more than $5,000 USD in funds. If you met the threshold requirement for 2024, then the Form 1099-K is available in your Shopify admin.
  • 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 more than 200 transactions. If you met the threshold requirement for 2023, then the Form 1099-K is available in your Shopify admin.
  • For any year, if you meet your state's individual thresholds, then the Form 1099-K is available in your Shopify admin.

State filing thresholds for 2025

Some states have lower filing thresholds than the federal requirement. If your business is located in one of these states and you meet the state threshold, then you receive a Form 1099-K even if you don't meet the federal threshold.

The state used for your 1099-K is determined by the details in your Shopify Payments account, not the address in your store admin settings.

The following table includes states with lower filing thresholds than the federal requirement. Because state thresholds can change, you should verify current requirements with your state's government website.

State filing thresholds for Form 1099-K in 2025
State2025 ThresholdTransaction RequirementNotes
ArkansasAt least $2,500 USDNo minimumGross payments within calendar year
CaliforniaAt least $600 USDNo minimumApp-based drivers only; all others follow federal
District of ColumbiaAt least $600 USDNo minimumGross payments within calendar year
IllinoisAt least $1,000 USDAt least 4 transactionsWithin calendar year
MarylandAt least $600 USDNo minimumGross payments within calendar year
MassachusettsAt least $600 USDNo minimumGross payments within calendar year
MissouriAt least $1,200 USDNo minimumGross payments within calendar year
MontanaAt least $600 USDNo minimumGross payments within calendar year
New JerseyAt least $1,000 USDNo minimumGross payments within calendar year
VermontAt least $600 USDNo minimumGross payments within calendar year
VirginiaAt least $600 USDNo minimumGross payments within calendar year

The Form 1099-K that Shopify issues to you accounts only for transactions processed through Shopify Payments.

Form 1099-K availability

If you meet the criteria for Form 1099-K, then the form is delivered in January for the previous calendar year's transactions. If you're the account owner, then you receive an email notifying you that the Form 1099-K is ready in the Finance section of your Shopify admin.

Tax information and Form 1099-K

The tax information that you add to your Shopify Payments account during setup is reviewed in advance of your Form 1099-K being issued. If the review highlights any incorrect or missing information, then you receive notification at the store owner's email address, in your admin notifications, and in the Payments section of your Shopify admin, to update your details.

Update your Form 1099-K details

You can update certain details on your Form 1099-K, such as your name, address, or tax identification number, directly from your Shopify admin. You might be asked to submit additional documentation to verify your changes. This option is available after the current year's form is generated, and before July 15.

Steps:

  1. From the Shopify admin, go to Finance > Documents.
  2. Click 1099-K.
  3. Next to the Form 1099-K that you want to update, click Update Details.
  4. Review and update the fields with the correct information.
  5. Click Save.
  6. Click Confirm.
  7. Click Submit for verification.

The Update Details option is available until July 15 of each year. After this date, the option isn't available again until the next year's forms are generated.

If you're unable to update your details using this option, then contact Shopify Support for assistance.

Update your tax information after receiving a notification

Shopify reviews tax information, such as your Social Security Number (SSN) or Employer Identification Number (EIN), before issuing your Form 1099-K. If there's tax information missing or tax information that can't be verified in your Shopify Payments account, then you receive a notification by email, admin alert, and banner in your Shopify admin where you can update 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 that you add can't be verified, then you receive further notification to update your details with the correct tax information. If you exceed the allowed number of verification attempts, then you must contact Shopify Support for assistance in updating your information.

If you fail to update your tax information, then your payouts might be paused and further restrictions might take place until your information can be verified.

Reporting your tax with an EIN or SSN

If you set up Shopify Payments with your business type set to Individual or Sole Proprietor, then Shopify reports your income to the IRS under your account representative's name and Tax ID (SSN or ITIN).

If you set up Shopify Payments with your business type set to Single Member Limited Liability Company (LLC), then Shopify reports your income to the IRS under your account representative's name and Tax ID (SSN or ITIN). If your LLC elects to be taxed as a corporation (C or S corporation), then you can contact Shopify Support to report under your business name and EIN.

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

Learn more about setting up Shopify Payments.

Receiving a Form 1099-K without meeting the threshold

1099-K reporting is performed at the tax identification number (TIN) level, and uses information such as your SSN or EIN. If you have two or more accounts with the same TIN, then the reporting volume is combined to determine if a Form 1099-K is made available. In this situation, a Form 1099-K is available in each account for that store’s reporting volume if the combined reporting volume is greater than that year’s threshold.

You might qualify to receive a Form 1099-K if you meet your state's filing thresholds. Filing thresholds for some states might differ from federal requirements. Refer to the state filing thresholds for 2025 for more details.

Download your Form 1099-K

If you're the store owner, or staff with the View tax documents permission, then you can download your Form 1099-K and a CSV file of the transactions that are accounted for in the document.

Steps:

Desktop

  1. From your Shopify admin, go to Finance.

  2. Click Documents.

  3. Click 1099-K.

  4. Click the Form 1099-K that you want to download.

Mobile

  1. From the Shopify app, tap the Menu icon.

  2. Tap Finance.

  3. In the Finance section, tap Horizontal menu.

  4. In the Documents menu, tap 1099-K.

  5. In the 1099-K forms section, tap the tax form that you want to download.

Download your 1099-K transactions

You can export your Form 1099-K transactions only if a Form 1099-K has been issued to your Shopify Payments account.

If you can't download your 1099-K transaction report or it doesn't match your Form 1099-K, then either your Shop Pay Installments account had a negative balance or your Shop Pay Installments payouts were on hold during the year.

As an alternative, you can download the transactions included in your Form 1099-K in CSV format.

Desktop

  1. From your Shopify admin, go to Finance > Payouts.

  2. Click Payouts.

  3. Click View order transactions.

  4. Click Export.

  5. Select 1099-K Transactions.

  6. Choose the date range of transactions that you want to download.

  7. Click Export items.

Mobile

  1. From the Shopify app, tap the Menu icon.

  2. Tap Finance.

  3. Tap Payouts.

  4. Tap Vertical menu, and then tap View order transactions.

  5. Tap Vertical menu, and then tap Export.

  6. Select 1099-K Transactions.

  7. Choose the date range of transactions that you want to download.

  8. Tap Export items.

Troubleshooting Form 1099-K availability

Troubleshoot missing 1099-K for a specific year

This is normal. A Form 1099-K is issued only if your Shopify Payments transactions meet the applicable federal or state threshold for that specific calendar year. Receiving a form for one year doesn't guarantee you'll receive one for subsequent years.

Federal thresholds change year over year. For example, the 2024 federal threshold was more than $5,000 USD, while the 2025 federal threshold was more than $20,000 USD and more than 200 transactions. If your 2024 transactions met the $5,000 threshold but your 2025 transactions didn't meet both the $20,000 and 200-transaction requirements, then you would receive a form for 2024 but not for 2025.

To verify whether you should receive a form for a specific year:

  1. Review the federal threshold criteria for that tax year.
  2. Check whether your business is located in a state with a lower state threshold. If you meet your state's threshold, then you receive a form even if you don't meet the federal threshold.
  3. Confirm your transaction volume and amount for that calendar year in the Finance section of your Shopify admin.
Troubleshoot 1099-K amount discrepancy

If the amount on your Form 1099-K differs from your sales reports or bank deposits, then this is usually expected. The 1099-K reports a specific subset of your transactions in a specific way.

Review the following common reasons for a discrepancy:

  • Transaction posting date, not order date: Your 1099-K is based on when transactions posted to your Shopify Payments account in the UTC timezone, not when the order was placed. If an order was placed on December 31 but posted on January 1, then it won't appear on that year's form, it will appear on the following year's form instead.
  • Gross amounts only: The 1099-K reports the gross value of transactions processed through Shopify Payments. It doesn't deduct refunds, chargebacks, processing fees, or Shopify Balance bills. The form reports what was collected, not your net income.
  • Shopify Payments transactions only: The 1099-K includes only transactions processed through Shopify Payments. Transactions through other payment methods, such as PayPal Express, manual payment methods, or cash sales, aren't included.

If you still believe there's an error on your form, then contact Shopify Support for help confirming the transactions included.

Before you contact Shopify Support about a Form 1099-K issue

Before reaching out to Shopify Support about a Form 1099-K issue, gather the following information to help resolve your issue faster:

  • The tax year you're asking about (for example, 2024 or 2025)
  • Whether you can access Finance > Documents in your Shopify admin, and whether a 1099-K form is listed there
  • Your approximate transaction volume and total payment amount for that calendar year
  • The state where your business is registered for Shopify Payments purposes
  • Whether you've received any notifications in your Shopify admin or by email about missing or unverifiable tax information
  • Your Tax ID type (SSN or EIN) and whether it matches what's in your Shopify Payments account
  • Steps you've already tried from the troubleshooting section

Having this information ready helps Shopify Support assist you more efficiently.