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.
From gross to bank, line by line
| Line on the statement | Effect on deposits | Effect on box 1a |
|---|---|---|
| Sale rows | Adds | Counted |
| Sales tax paid by buyer (collected by the marketplace) | Taken out | Not on the form |
| Refunds | Taken out | Not subtracted |
| Listing, transaction and processing fees | Taken out | Not subtracted |
| Etsy Ads and Offsite Ads fees | Taken out | Not subtracted |
| Shipping labels | Taken out | Not subtracted |
| Reserves and funds not yet available | Held back until later | Not subtracted |
Etsy describes the deposit figure as what remains after refunds, fees, taxes and reserves, and says the gross on the form "won't match" your revenue, deposits or net profit.
Deposits also follow their own calendar. A deposit in early January can carry December sales, so even a perfect year never lines up deposit by deposit.
Sources, read 10 November 2026: Etsy Help, What Do I Need to Know About My 1099-K Tax Form?; Etsy Help, How Is the Total on My 1099-K Calculated?; Etsy Help, How to Manage Your Payment Account; IRS, Instructions for Form 1099-K (revision 12/2026 as shown on the page).
See your own numbers
The full reconciliation walks from statements gross down to net activity and the deposits sent, for the year and for each month.
Questions
Should my deposits add up to box 1a?
No. Deposits are after refunds, fees, taxes and reserves. Box 1a is before all of them.
Which number do I compare with the form?
Gross: the Gross column of the payments sales CSV, or the Sale rows of your monthly statements less the buyer-paid tax rows.