You are not the only one having trouble finding your Shopify 1099 or tax return. Numerous Shopify store owners have difficulty finding their Shopify 1099 forms. You’re in the right place, We’ll show you how to do it and how to report tax correctly. We have done all the research to make sure you know everything. We’ve even created a step by step guide that will show you how to locate your 1099-K, where to find transaction history, what you should do if it doesn’t come to you, and how you can file it once it is.
Let’s take off the bandage immediately.
When can you expect your 1099-K tax return?
Shopify provides an annual report to the IRS on all account owners and transactions. Shopify will send form 1099-K to store owners with more than 200 transactions or that were processed by Shopify Payments or PayPal during the previous calendar year.
This threshold will be lower to $600 by 2022.
The form will be sent to all account owners who meet the reporting requirements. Each store receives a 1099-K separate form. If you have multiple stores, each store will get a 1099K separate form.
Where can I find my 1099-K?
Shopify will email a copy of your 1099-K form to you if you are eligible. It can also be found in your admin panel.
Because this information is confidential, only the account owner can access the 1099-K forms. Here’s how to find your 1099 via the Shopify platform.
- Log in to your Shopify admin Account
- Check out the Payments section
- In the upper left corner, click on Document and
- If you are eligible for a 1099K, the form will appear and you can download it
What if your 1099-K didn’t arrive?
If you did not exceed the threshold of 200 transactions or $20.000 gross sales you won’t be eligible for a 1099K. If you are a Vermonter or Massachusetts resident, there is an exception. If your store has more than $600 in gross income, you’ll get a 1099K.
You will still have to pay taxes even if you don’t qualify for a 1099K. Shopify still reports income to the IRS. Therefore, you need to find documentation about your earnings. You can do this from your Shopify admin panel.
- Log in to Shopify
- Visit the Reports page
- Open Finances
- You can view your payouts and download a report on your gross sales.
This report is required to verify your 1099-K or to file taxes if one was not received.
How to file Shopify 1099-K.
Once you have received your Shopify 1099K and looked through the transaction history of your store, you can fill out the tax forms and file taxes. Schedule C and Schedule SE are required for sole proprietors. These forms can be downloaded from the IRS website www.irs.gov
First, fill out Schedule C. This will allow you to calculate the profit and loss of your store in the previous tax year. You will start with the gross income from your 1099-K transaction or form. Next, you will subtract all 1099 business expenses as well as write-offs.
You may be eligible for the following write-offs:
- Shopify, store addons, CRM are all sub-scription services.
- Domain hosting and domain payments
- Advertising costs for creatives and campaigns
- Shipping and storage costs
- Packaging and products
- A phone or computer used for business
- Business travel expenses
You must keep track of all transactions for three years and save receipts to write off expenses. Keeper Tax helps small businesses save time and money by organizing their expenses and monitoring their business credit card. This way, you won’t need to worry about losing receipts or missing write-offs when it comes time to file taxes.
Next, fill out the Schedule SE
Schedule SE must be used to calculate self-employment taxes. Shopify store owners are considered employees and a business by the IRS. This means that your taxes won’t be withheld, and you will have to pay 15.3% for both the employer’s and employee’s FICA taxes.