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.

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 mora davčnemu uradu IRS predložiti obrazec 1099-K za transakcije, ki jih obdelate prek Shopify Payments. Te vrednosti boste morda morali prijaviti ob vložitvi napovedi za davek na dohodek. Ta obrazec ustvari Shopify Payments ter ga vsako leto posreduje vam in uradu IRS. Lastniki trgovin in osebje z dovoljenjem Ogled davčnih dokumentov lahko dostopajo do informacij, povezanih z obrazcem 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.

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

Če ste lastnik trgovine ali član osebja z dovoljenjem Ogled davčnih dokumentov, lahko prenesete svoj obrazec 1099-K in datoteko CSV s transakcijami, ki so vključene v dokumentu.

Steps:

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.

Odpravljanje težav z razpoložljivostjo obrazca 1099-K

Preden se obrnete na podporo Shopify glede težave z obrazcem 1099-K

Preden se obrnete na podporo Shopify glede težave z obrazcem 1099-K, zberite naslednje podatke, ki bodo pomagali pri hitrejšem reševanju težave:

• Davčno leto, za katero sprašujete (na primer 2024 ali 2025)
• Ali imate v skrbniku Shopify dostop do razdelka Finance > Dokumenti in ali je tam naveden obrazec 1099-K
• Približen obseg transakcij in skupni znesek plačil za to koledarsko leto
• Zvezna država, v kateri je podjetje registrirano za namene storitve Shopify Payments
• Ali ste v skrbniku Shopify ali po e-pošti prejeli obvestila o manjkajočih ali nepreverljivih davčnih podatkih
• Vrsta vaše davčne številke (EMŠO ali davčna identifikacijska številka delodajalca (EIN)) in ali se ta ujema s tisto v vašem računu Shopify Payments
• Koraki iz razdelka za odpravljanje težav, ki ste jih že izvedli

Če imate te podatke pripravljene, vam lahko podpora Shopify učinkoviteje pomaga.