Free tool
1099-K reconciliation calculator
A 1099-K reports gross payments, so it rarely equals the sales in your books. Enter the items that explain the difference and see what is left to account for.
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How it works
How it works
Start with Box 1a gross from the form. Subtract what it includes that is not your sales for the year: refunds (the form shows payments before refunds), sales tax you collected, shipping you passed through, personal or non-business payments such as friends repaying you, and amounts that belong to another year. What is left should line up with the sales in your books.
Processing fees are not subtracted here: the form reports gross before fees, and fees belong in your expenses. Keep records that support every item.
FAQ
About this calculator
Why is my 1099-K higher than my sales?
It reports gross payments: before refunds and fees, and sometimes including sales tax, shipping and payments that were not business income.
Do I subtract processing fees?
Not here. The form reports gross before fees. Fees are a business expense recorded separately in your books.
What if there is still a gap?
Look for payments recorded in a different year, a second account or platform, or sales entered twice. Keep the records, and ask your tax preparer how to report what you find. This tool is not tax advice.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Read reconciling a 1099-K to your sales records, get ready for your preparer with the free tax-time records starter, or check processor deposits with the payout reconciliation calculator. More free tools: Freelance hourly rate calculator, Days sales outstanding calculator, Sales tax calculator, or see all free tools.
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