1099-K RECONCILIATION WORKSHEET · RUNS IN YOUR BROWSER · NOTHING UPLOADED
Why is your 1099-K higher than what you actually made?
Add one row per Form 1099-K you received this year — Etsy, eBay,
Poshmark, Mercari, Depop, Whatnot, StockX, or any other marketplace or
payment app — with the Box 1a amount it reports, then back out refunds,
the sales tax the marketplace collected and remitted for you, and your
own costs. See a reconciled estimate per platform and combined across all
of them.
Still owe quarterly estimated tax on this income as the
year goes? The quarterly
estimated tax calendar is the other end of the same tax year — that
page sets aside payments as you go, this one reconciles what the
marketplace actually reported once the year is over.
Paying someone else on 1099-K income instead — a
contractor, freelancer, or vendor of your own? The
1099-NEC vendor tracker flags which
of them cross the 2026 $2,000 reporting threshold and whose W-9 is still
missing — nothing uploaded there either.
Not sure a 1099-K is coming at all this year? The
1099-K threshold checker
estimates whether a platform is likely to issue one, per platform and
per tax year, against the federal threshold's four changes since 2022
plus four states' own stricter rule — this page is for the form once
you already have it.
Add a platform's 1099-K
Reconciled worksheet
No platforms added yet — add one above, or load the example.
Platform
Box 1a
Non-income adj.
Adjusted receipts
Costs
Est. net profit
What this does and doesn't do
Box 1a of each 1099-K is a gross figure — before
refunds, fees, discounts, or any sales tax the marketplace itself
collected and remitted for you are backed out, per the IRS's own General
Instructions for Forms 1099-K. This worksheet backs those out, then
subtracts the costs you enter (fees, cost of goods sold, shipping) to
estimate net profit. It does not know about your
1099-NEC, W-2, or other income, does not determine your
actual tax liability, and does not file anything.
Verify every figure against the platform's own 1099-K and payout
statements before relying on it.
Common questions
Why is my 1099-K higher than what I actually made?
Form 1099-K Box 1a reports the gross amount of payment-card and third-party network transactions before any adjustment for refunds, fees, discounts, or credits — that is how the IRS's own instructions for the form define it. Many marketplaces also collect and remit sales tax on your behalf as a "marketplace facilitator," and that tax often passes through the same payout and lands in Box 1a too, even though it was never your money. None of that is your taxable income; this worksheet backs it out.
Do I have to report the full Box 1a amount as income?
No — Box 1a is a gross reporting figure, not a determination of your taxable income. What you actually owe tax on is your net profit: gross receipts (after backing out amounts that were never yours, like refunds and marketplace-remitted sales tax) minus your costs, such as cost of goods sold, platform fees, and shipping you paid. This worksheet estimates that net figure; your own records and your tax preparer confirm it.
I sell on more than one platform and got more than one 1099-K — do I add them together?
Generally your total gross receipts across all platforms and payment methods count toward your business income, whether or not each individual platform issued a 1099-K. This worksheet lets you enter every platform's 1099-K as its own row and totals the reconciled result across all of them, so you have one combined figure instead of several separate ones.
Is this worksheet tax advice or a substitute for filing?
No. It performs arithmetic on the numbers you enter — it does not know your other income, does not determine your actual tax liability, and does not file anything with the IRS or any platform. Verify every figure against the platform's own 1099-K and payout statements, and treat the result as a worksheet for your own records or your tax preparer, not a conclusion.