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What does the 1099-K include? Why doesn't it match my sales reporting?

The amount reported in our 1099-K does not match what Square returns in SALES SUMMARY report. How does Square calculate 1099-Ks?

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Admin

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Hey @WineSneak 🍷 

 

Great question! The amount and transaction count on each form are calculated based on your gross sales on the transaction date of the sales. This includes revenue from card payments that were refunded.

 

Note: Gross sales include taxes and tips collected on a sale if they are charged on the card.

 

Cash sales are not included in the total we report on the Form 1099-K.

 

Because of this requirement, the amount shown on the 1099k form will be different from the amount settled into your bank account. This is because you may have had refunds, chargebacks or holds, and Square’s fees were deducted before funds were transferred to your bank.

 

The transaction date is the date in our system that the transaction took place, which is based on a standardized time known as UTC. Your online Square Dashboard shows your transactions in your local time, so there may be small variances if you have transactions that occur after either 4:00 pm or 5:00 pm (depending on daylight savings time) and midnight in your local time zone.

 

For the reasons above, you will see a difference between your Square Summary reports and your 1099k. For more information, please take a look at this video:

 

 

Isabelle
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.

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Message 2 of 2
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Admin

Best Answer

Hey @WineSneak 🍷 

 

Great question! The amount and transaction count on each form are calculated based on your gross sales on the transaction date of the sales. This includes revenue from card payments that were refunded.

 

Note: Gross sales include taxes and tips collected on a sale if they are charged on the card.

 

Cash sales are not included in the total we report on the Form 1099-K.

 

Because of this requirement, the amount shown on the 1099k form will be different from the amount settled into your bank account. This is because you may have had refunds, chargebacks or holds, and Square’s fees were deducted before funds were transferred to your bank.

 

The transaction date is the date in our system that the transaction took place, which is based on a standardized time known as UTC. Your online Square Dashboard shows your transactions in your local time, so there may be small variances if you have transactions that occur after either 4:00 pm or 5:00 pm (depending on daylight savings time) and midnight in your local time zone.

 

For the reasons above, you will see a difference between your Square Summary reports and your 1099k. For more information, please take a look at this video:

 

 

Isabelle
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.

View Best Answer >

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