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Will I Get a 1099 From Shopify?

Last updated on October 2, 2022 @ 4:55 am

As an online business owner, you’re responsible for paying taxes on your earnings – whether you receive a 1099 or not. The IRS requires Shopify to issue a 1099-K form to merchants who process more than $20,000 and have more than 200 transactions in a calendar year through Shopify Payments.

If you don’t use Shopify Payments, you’re not eligible for a 1099-K form from Shopify. However, you may still be required to report your earnings to the IRS.

Here’s what you need to know about 1099 forms and your responsibilities as an online business owner:

What is a 1099 form?

A 1099 form is an information return that reports the total amount of money you received from a payer during the year. The payer is required to send you a 1099 form if they paid you $600 or more during the year. You’re then responsible for reporting that income on your tax return.

Do I need to pay taxes on money I receive from Shopify?

Yes, you’re responsible for paying taxes on all the money you earn – regardless of whether or not you receive a 1099 form. If you don’t receive a 1099 form, you’ll still need to report your earnings to the IRS.

PRO TIP: If you are using Shopify to sell products online, you may be wondering if you will receive a 1099 form from the company. While Shopify does not typically issue 1099 forms to its sellers, there are some circumstances where you may be required to provide one.

For example, if you sell products through Shopify that are subject to sales tax, you may be required to provide a 1099-MISC form to the IRS. Additionally, if you process payments through Shopify using a third-party service like PayPal or Stripe, you may need to provide a 1099-K form to the IRS.

If you are unsure whether or not you will need to provide a 1099 form to the IRS, we recommend consulting with a tax professional.

When will I get my 1099 form from Shopify?

Shopify will send you a 1099-K form by January 31st if you meet both of the following criteria in the previous calendar year:

  • You processed more than $20,000 through Shopify Payments
  • You had more than 200 transactions through Shopify Payments

Will I Get a 1099 From Shopify?

. As an online business owner, it is your responsibility to pay taxes on your earnings – whether or not you receive a 1099 from Shopify.

If you process more than $20,000 and have more than 200 transactions in a calendar year through Shopify Payments, Shopify is required by the IRS to send you a 1099-K form. However, if you don’t use Shopify Payments, you are not eligible for a 1099-K form from Shopify. You may still be required to report your earnings to the IRS.

Drew Clemente

Drew Clemente

Devops & Sysadmin engineer. I basically build infrastructure online.