The number on a 1099-K is not your revenue. This 1099-K tax calculator takes the gross figure and the five items sitting underneath it, then shows you the gap and what remains. Runs in your browser. Nothing is stored or sent anywhere.
1099-K Reconciliation Calculator
A reconciliation aid, not tax advice. Confirm figures with your books and a CPA.
Forvendo · every other Friday
One operating decision, worked through with numbers
The same approach this calculator takes: the sources named, the assumptions shown, and the arithmetic left where you can check it.
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Why the form and your bank account disagree
A 1099-K reports gross payments processed, before anything is deducted. Your bank account reflects net payouts, after deductions. The difference is not an error and it is not a discrepancy to explain away — it is how the form is defined. The IRS sets out what the form covers in Understanding your Form 1099-K.
Five line items generally account for the gap:
- Refunds — the original charge stays in the gross figure. The refund does not remove it.
- Chargebacks — funds leave your account, but the transaction was still processed and still counts.
- Processing fees — deducted from your payout, not from the reported gross.
- Shipping collected — passes through to the carrier, but is part of the payment processed.
- Sales tax collected — a liability owed to the state, not income, but again part of the payment processed.
On a store doing $20,000 a month, the gap between the two figures is routinely several thousand dollars, and all of it is explainable by those five lines.
What this 1099-K tax calculator gives you
It returns the residual after the deductions you enter — the figure that should flow to your books rather than the gross on the form.
The useful part is what you notice while filling it in. An unexpectedly large processing-fee figure often means a payment method mix that has drifted. An unexpectedly large refund figure is a product or expectations problem showing up in a tax document. Enter each line separately rather than one lump sum, and the outlier tends to announce itself.
If the residual does not land close to the revenue in your own books, the difference is worth finding before filing rather than after.
Where to find each number
The platform reports that reproduce each figure differ by platform, and they are not always where you would expect. The per-platform mapping — including which report on Shopify, Etsy, Amazon, eBay, and PayPal actually reproduces the gross figure — is documented in the guides below and in the free reconciliation sheet, which carries a tab per platform.
What this does not do
- It does not compute tax owed. It reconciles a reported gross figure to revenue. What that revenue produces in tax depends on your expenses, entity, and state.
- It does not merge multiple 1099-Ks. A seller on several platforms receives several forms and should reconcile each separately before combining.
- It does not decide reporting positions. If your reconciliation does not resolve cleanly, that is a conversation to have with a CPA rather than a number to force.
Related
- Does Shopify Send You a 1099-K? — the full five-line reconciliation method
- Shopify Taxes Explained — how the 1099-K fits with sales tax, quarterly payments, and deductions
- Free 1099-K reconciliation sheet — seven tabs, one per platform
- All free calculators
Frequently asked questions
Is the amount on my 1099-K what I pay tax on?
No. It reports gross payments processed before refunds, chargebacks, processing fees, shipping collected, and sales tax collected are removed. Taxable income sits below that figure, and business expenses come off after that.
Why is my 1099-K higher than my Shopify revenue dashboard?
The dashboard and the form are measuring different things. The form counts payments processed; the dashboard reflects orders and typically nets out at least some of the five items above.
What if I think the 1099-K is wrong?
Reconcile first. Most apparent errors resolve into one of the five line items. If a genuine discrepancy remains after reconciling, the issuing platform is the party that can correct the form, and a CPA can advise on how to handle the return in the meantime.
Are my numbers saved anywhere?
No. The calculator runs entirely in your browser. Your inputs stay on your device and are remembered locally only so the figures are still there next visit.