Finding And FilIng Your Shopify 1099-K Made Easy
If you have a hard time finding or figuring out your Shopify 1099 and tax return, you're not alone. Every year, numerous Shopify store owners struggle to find their Shopify 1099 forms and how to file them. Lucky for you, you've come to the right place. In this post, we're going to tell you how to do that and explain how to do tax reporting the right way. We've done all the research and covered what you need to know. In fact, we've created a step-by-step guide on how to find your 1099-K form, where to find your transaction history, what to do if you didn't get one, and how to file it once you have it.
By the end of this article, you will find out:
- When will you get your 1099-K tax form?
- Where can you find your 1099 Form?
- What to do if you didn't get one
- How to file your 1099 taxes and claim your write-offs
Let's rip the bandaid off right away. Taxes are probably the least exciting about running an e-commerce business. We get it. But since there's no way around it, let's talk about it.
At Keeper Tax, we help small business owners and independent contractors save precious time and money on taxes.
When will you get your 1099-K tax form?
Shopify reports to the IRS about all of their account owners and their transactions, on annual basis. Store owners who had over 200 transactions and processed over $20.000 in Shopify payments or PayPal in the last calendar year, will receive form 1099-K from Shopify. This form is be issued before January 31st to every account owner who meets the reporting requirements along with a copy to the IRS. Every store gets a separate 1099-K form, so if you run multiple stores, you will receive a separate 1099-K for every store.
Where can you find your 1099-K?
If you qualify for a 1099-K form, Shopify will E-mail a copy to the email you provided in your account. You will also be able to find it in the admin panel in your account.
Only the account owner has access to the 1099-K forms because this is sensitive information, but here's how you can find your 1099 on the Shopify platform:
- Log in to your Shopify admin account
- Go to the payments section
- Click on Documents at the top left corner
- If you qualify for a 1099-K, the form will show up and you will be able to download it
What if you didn't receive your 1099-K?
When you didn't exceed the threshold of 200 transactions and $20.000 gross sales, you don't meet the reporting requirements for a 1099-K and won't receive one. There's an exception if you live in Vermont or Massachusetts. There, you will get a 1099-K if your store exceeds $600 in gross income in the last tax year.
Not qualifying for a 1099-K, doesn't free you from paying taxes and Shopify still reports your income to the IRS, so you must find the documentation for your earnings yourself. This too can be done on your Shopify stores admin panel.
- Log in to your Shopify account
- Go to the Reports page
- Open Finances
- Here, you'll be able to view payouts and download a report of your gross sales
You will need this report to check your 1099-K and to file your taxes if you didn't receive one.
How to file your Shopify 1099-K and claim your write-offs
Once you have your Shopify 1099-K and found transaction history from your store, it's time to fill out the necessary tax forms and file your taxes. If you're a sole proprietor, you will need Schedule C and Schedule SE. You can get these forms from the IRS official website www.irs.gov
At first, you must fill out Schedule C. Here, you will calculate your profit and losses from your store during the last tax year. Start with gross income stated on your 1099-K form or transaction, then proceed to deduct all of your 1099 business expenses and write-offs.
Some of the write-offs available to you are:
- Subscription services such as Shopify, store add-Ons, CRM
- Web hosting, domain payments
- Advertising expenses for your campaigns and creatives
- Storage and shipping expenses
- Products and packaging
- Phone, a computer used for business
- Business travel expenses
To write off your expenses, you must save your receipts and keep a detailed record of your transaction for three years. At Keeper Tax, help small business owners save precious time and money we do this for you by monitoring your business credit card and organizing your expenses in real-time. That way, you don't have to worry about losing your receipts and missing out on write-offs, when it's time to file your taxes.
Next, you fill out the Schedule SE
On Schedule SE, you must calculate your self-employment taxes. As a Shopify store owner, the IRS considers you a business and an employee at the same time. This means your taxes aren't withheld and you must pay both the employers' and the employee's portion of FICA taxes a total of 15.3%.
To calculate your self-employment tax, use our free online 1099 tax calculator