A worked 1099-K reconciliation, month by month
A sample shop's year: twelve statements against boxes 5a to 5l. Nine months tie, three do not, and the table shows why.
The numbers are sample data made for this site, not a real shop. They are the files behind the "Try a sample year" button below.
| Month | Box | Form | Statements gross | Difference | Result |
|---|---|---|---|---|---|
| January | 5a | $3,275.05 | $3,275.05 | $0.00 | Ties |
| February | 5b | $1,984.96 | $1,984.96 | $0.00 | Ties |
| March | 5c | $4,816.95 | $4,833.97 | -$17.02 | Does not tie |
| April | 5d | $5,744.06 | $5,727.04 | +$17.02 | Does not tie |
| May | 5e | $1,084.46 | $1,084.46 | $0.00 | Ties |
| June | 5f | $3,347.40 | $3,347.40 | $0.00 | Ties |
| July | 5g | $11,908.61 | $11,908.61 | $0.00 | Ties |
| August | 5h | $7,383.84 | $7,333.84 | +$50.00 | Does not tie |
| September | 5i | $2,000.91 | $2,000.91 | $0.00 | Ties |
| October | 5j | $2,067.74 | $2,067.74 | $0.00 | Ties |
| November | 5k | $12,899.93 | $12,899.93 | $0.00 | Ties |
| December | 5l | $1,826.28 | $1,826.28 | $0.00 | Ties |
| Year | 1a | $58,340.19 | $58,290.19 | +$50.00 | Does not tie |
Statements gross is each month's Sale rows less its "Sales tax paid by buyer" rows. Difference is the form minus the statements.
Reading the three months that do not tie
- March (-$17.02). April is off by the opposite amount (+$17.02). The two months together tie, which points to a sale dated one side of month-end on the statement and the other side on the form. The difference equals one order on the statement: #3512000041, Mar 31 ($17.02). The form does not count it in March.
- April (+$17.02). March is off by the opposite amount (-$17.02). The two months together tie, which points to a sale dated one side of month-end on the statement and the other side on the form. The difference equals one order from the March statement: #3512000041, Mar 31 ($17.02). The form counts it in April.
- August (+$50.00). No single statement line equals this difference. Compare the Sale rows in the August statement with your orders for the month.
March and April cancel each other, so they leave the year untouched. The +$50.00 on the year line is August alone. More on that pattern: one month is off but the year matches.
The same year, from gross down to deposits
| Line | Year | In box 1a? |
|---|---|---|
| Statements gross | $58,290.19 | Yes |
| Refunds to buyers | -$7,532.56 | Not subtracted |
| Listing, transaction and processing fees | -$5,120.88 | Not subtracted |
| Etsy Ads and Offsite Ads | -$1,274.01 | Not subtracted |
| Shipping labels | -$1,267.42 | Not subtracted |
| Deposits sent to the bank | $43,226.04 | Not on the form |
Smaller lines (tax returned on refunds, rows the tool did not recognise) are left out of this table, so it does not foot to the cent. The full reconciliation in the tool lists them.
In this sample, $43,226.04 reached the bank against a form of $58,340.19. To see the gap for your own year without files, use the gross to deposits calculator.
Sources, read 10 November 2026: IRS, Instructions for Form 1099-K (revision 12/2026 as shown on the page); Etsy Help, What Do I Need to Know About My 1099-K Tax Form?.
Run the example yourself
Select "Try a sample year" below. It loads these twelve statements and the form amounts, and gives the table above.
Questions
Is this a real shop?
No. The statements and the form amounts are sample data made for this site so the arithmetic can be shown in full.
What does "tie" mean?
The form and the statements match to the cent for that month.