Why your 1099-K is higher than your sales
Drop your monthly statement CSVs and type the amounts from the form. See which months tie out (match to the cent) and which do not.
The four usual causes
Refunds
Money you sent back to buyers stays in the gross. The form does not subtract it.
Shipping charged
What buyers paid for shipping is part of what they paid, so it is in the gross.
Fees not subtracted
Listing, transaction, processing and ad fees come out of your deposits, not out of the form.
Tax the marketplace collected
Sales tax Etsy collects from buyers is not on the form, though it shows on your statement.
Price
$19 one-time per tax year for the full reconciliation: the reason behind each difference, every line by month, and the PDF and XLSX export. Free during launch. The month-by-month match or mismatch flags are always free.
Straight answers
Etsy 1099-K doesn't match my sales
The form reports gross payments. Your dashboard, your deposits and your net profit are worked out after things the form does not take off.
Does the 1099-K gross include refunds and shipping?
Yes. Refunds, shipping and fees are all inside box 1a. The form never subtracts them.
How to reconcile a 1099-K with monthly statements
Reconcile means showing, month by month, that the form and your own records add up to the same number.
Why the 1099-K is higher than your deposits
Deposits are what is left after refunds, fees, ads, labels and tax. The form is the amount before any of that.
Does box 1a include sales tax?
Tax the marketplace collected from buyers: no. Tax you set up and collected yourself: Etsy lists it as part of gross.
Tables and lookups
Form 1099-K, box by box
The numbered boxes, 1a to 8, as the IRS instructions (12/2026) describe them to the people who fill the form in.
Boxes 5a to 5l: which month is which
Twelve boxes, January to December. Together they add up to box 1a.
Which statement rows count toward the gross
How this tool treats each kind of row on the monthly statement CSV, and why.
The monthly statement CSV, column by column
A CSV is a plain text spreadsheet. This one lists the sales, fees, refunds and deposits of one month.
Which CSV to download, and what each is for
Five exports, two menus. Two of them are the ones to use for a 1099-K.
Five numbers that count different things
Revenue, net profit, deposits, Order Total and gross each count something different.
State 1099-K thresholds Etsy lists for 2025
A seller under the federal line can still get a form if the shop is in one of these places.
The 1099-K threshold is $20,000 and 200, not $600
Guides that still say $600 are out of date. Here is the wording and where it comes from.
The Gross column in the payments sales CSV
This is the file Etsy points to for checking the form's total.
If the amount on your 1099-K looks wrong
First find out whether it is wrong or just gross. Then the IRS page says who to ask.
Questions
Are my statements uploaded?
No. The files are read by your browser on your device. They are not sent anywhere. The site records only anonymous counts, such as "the tool was used".
Why is the 1099-K higher than what reached my bank?
The form reports gross payments. The IRS instructions say gross is counted without adjusting for fees, refunded amounts or shipping amounts. Deposits are what is left after all of those.
Does box 1a include sales tax?
Etsy states that taxes it collects from your buyers are not reported on the form it issues. It also lists sales tax you applied yourself with its sales tax tool as part of gross sales. The tool takes the "Sales tax paid by buyer" rows off the Sale rows and tells you if a difference equals exactly that tax.
Do I need all twelve statements?
No. Months without a file are marked missing and left out of the year total. You can also type only box 1a.
What does it cost?
The month-by-month match or mismatch flags are free. The full reconciliation with reasons, every line by month, and the PDF and XLSX export is $19 one-time per tax year, and free during launch.
Who gets a 1099-K?
For third party networks, the IRS instructions set the reporting line at more than $20,000 in gross payments and more than 200 transactions in the calendar year. Etsy lists lower thresholds for some states for 2025. See the state table.
Is this tax advice?
No. It is arithmetic on your own files. It does not tell you what is taxable or deductible. For that, ask a tax professional.