How Is the Total on My 1099-K Calculated?

Quick answer

On Etsy, your gross sales is your income before expenses are subtracted. Your 1099-K gross sales won’t match other payment totals in your shop, like your revenue, your deposit amounts, or your net profit, which all subtract expenses.  

If you're 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.

Your gross sales is the total amount your buyers have paid you, for the entire year, without subtracting expenses, such as:

  • Fees
  • Refunds
  • Shipping costs

Note this isn’t a complete list of expenses that may not be reflected on your 1099-K form.

If you run more than one Etsy shop, your 1099-K will add all your sales between each shop that has the same taxpayer ID number on file, and the same 1099-K will be available for download in each shop.

Any payments not processed through Etsy Payments won’t be included in your 1099-K. For example, in-person sales through Square.

In some cases, Etsy collects sales tax from buyers and remits it to tax authorities on behalf of sellers. Etsy collects and remits sales tax for many states on your behalf. These totals won't be reflected in your 1099- K.

Watch Etsy's 1099-K video

 

Why doesn't my gross sales match my revenue, deposits, or net profit?

Your 1099-K gross sales won’t match other payment totals in your shop, like your revenue, your deposit amounts, or your net profit.

On Etsy, your gross sales adds all the money that buyers pay for orders that then goes into your Payment account. No expenses or refunds are subtracted from this amount.

Amounts like your revenue, your deposits, and your net profit all subtract expenses such as Etsy fees, sales tax you collect, refunds, and shipping costs. Learn more about fees and taxes for selling on Etsy.

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. The dollar amount of each transaction is determined on the date of the transaction.”

The amounts you see in your Payment account, Stats, and CSV file all have different meanings.

Revenue

Revenue usually equals your sales minus any discounts you provided to buyers. This total doesn’t factor in selling fees, shipping costs, or orders you fully refunded and canceled. Learn more about how your revenue is calculated in Stats.

The Revenue amount pointed out in the Stats section of Shop Manager. From left to right Stats shows how many Visits your shop had, your amount of Orders, Conversion Rate, and Revenue. A graph below shows orders over the selected time.

Revenue pointed out on the Dashboard in Shop Manager. From left to right, Dashboard shows Total views, Visits, Orders, and Revenue for the selected time period.

Available for deposit

Your Available for deposit amount is ready to be deposited to your bank account. It includes available sales funds minus refunds, fees and taxes, and any funds that have been placed in a reserve.

Available for deposit as it appears in a Payment account, to the right of Amount due.

Net profit

Net profit is the total of funds from your sales, minus any refunds, fees, shipping costs, and taxes. Net profit is displayed in the Activity summary in your Payment account.

Net profit pointed out in the Activity Summary of the Payment account. The Activity summary has a dropdown to choose the date range you want. Below that, it says your current net profit on Etsy for this time period is, followed by the amount. Below that are totals of your Sales, Fees, Marketing costs, and shipping costs.

Amount and Order totals in CSV files

You can download CSV spreadsheet files that you can use to make calculations and keep track of your listing and sales history. Learn how to download CSVs.

The Amount in your Etsy Payments Deposit CSV equals available sales funds minus refunds, fees and taxes, and any funds that have been placed in a reserve.

The Order Total in Orders CSV adds all your sales and doesn’t subtract fully refunded and canceled orders.

The Amount column in a spreadsheet generated from the CSV file. From left to right, the columns are Date, Amount, Currency, Status, Bank Account Ending Digits.

The Order Total column in a spreadsheet generated from the CSV file. The columbs from left to right are Discount Amount, Shipping Discount, Shipping, Sales Tax, Order Total, and Status.

How to calculate your gross sales

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, select Shop Manager and then Settings.
  2. Select Options.
  3. Select the Download Data tab.
  4. Choose the Etsy Payments Sales CSV type.
  5. Choose Download.
  6. Open the CSV file and total the Gross column for the fiscal year. This is the total reported on your 1099-K form.
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