How Is the Total on My 1099-K Calculated?

If you are located in the US or paid in USD, Etsy is required to report your total gross sales income from Etsy Payments on the 1099-K form without subtracting expenses, such as (not a complete list):

  • Fees
  • Refunds
  • Shipping costs
  • Sales tax collected by you

 

1099-K total = Gross sales income

Taxes collected by Etsy from your buyers are not reported on the 1099-K form we issue.

What does gross sales income mean?

According to the IRS, gross amount means, “the total dollar amount of total reportable payment transactions for each participating payee without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts”.

 

How to calculate your gross income

To calculate the totals on the 1099-K form issued for your Etsy Payments sales, you can download your Etsy Payments CSV file:

  1. On Etsy.com, click Shop Manager.
  2. Click Settings.
  3. Select Options.
  4. Click Download Data tab.
  5. Choose the Etsy Payment Sales CSV type.
  6. Click Download.
  7. Open the CSV file and total the Gross column for the fiscal year. This is the total reported on your 1099-K form.

1099-K PayPal sales from your own PayPal account

If you use your own PayPal account to accept payments for Etsy orders, you may receive a separate 1099-K from PayPal.

As a payment processor, PayPal is also required to send out 1099-K forms to Etsy sellers who meet the required thresholds. We recommend that you contact PayPal for more information.

Keep in mind that PayPal will not report payments processed through Etsy Payments. You can rest assured sales won’t be reported twice.

 

What’s included in my Etsy Payments Sales CSV?

Here is a breakdown of the information included on your Etsy Payments Sales CSV:

  • Gross: Order total before taxes that are collected and remitted by Etsy. This is the same gross amount that’s shown on the Etsy 1099-K form issued by Etsy.
  • Fees: Payment processing fee charged for Etsy Payments sales.
  • Net: Gross Order total minus the payment processing fee.
  • Adjusted Gross: Order amount after any refund issued.
  • Adjusted Fee: Payment processing fee after credit for a refund.
  • Adjusted Net: Amount after a refund is deducted and payment processing fee credit.
  • Refund: Refund amount issued to back to the buyer for their order.
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