Why is my 1099k statement different than the exportable income statements square produces?

[monika1]

I export my monthly statements to excel and add expenses for my books. But nothing matches with the 1099k form that square produces. I have substracted my cash, checks and fees still not matching amount? It doesn't make sense how they figure out the 1099k statement. I realize I don't need to use it. Still how do they come up with the numbers. Im using their numbers to keep track of my income it should make sense shouldn't it? 

[nika]

Hey @monika1. Sorry it's not all adding up for you. First I'd recommend reaching out to a Tax Professional so they can help you dig into the number differences. They should be able to help pin point the issue.

[Jess124]

Hi Bea

the only way to clear this up is to talk to a tax professional?? I am having the same issue. The gross number in my reports are always less than my 1099k. You have no idea why that would happen? Where is the extra gross coming from?

[Candlestore]

@Jess124@nika  ;

I was just looking at mine and thought well Square's 1099 is only for Credit Card transactions.  Then on my report for last year 2022 the Credit card sales are a few hundred dollars less than the 1099 form.  My fees are a couple thousand, so its not because of Square Fees.  Square should be able to tell us their formula for calculating the 1099 form, which should be what Square Pays out to the business.  for Example Credit Card sales - Square Fees is what we pay to Business A.   Not Business A rang up $5000 in Gross Credit Card sales - Square Fees + some random undefined fee = 1099 Gross of $5386 for example.  Gross Credit Card Sales includes my Sales tax which is NOT paid by Square, so how is the 1099 higher?   Someone at Square should have a simple formula that Square uses and i find it hard to believe that this would be only attributed to a Rounding error in Squares favor.   Square stating they Paid me $300 more then it actually did for their ability to lower their tax payment.

So why not check into this Formula for us to see @nika ?

Square gave us the Deposit formula, (Credit Card Sales - Square Fees = our Deposit)  just do something like this for our 1099.  Our yearly deposits from Square should add up to the 1099 Gross.  Which I will be checking later in my QuickBooks to see if that matches.

My accountant said that the Deposits should total what Square is reporting on the 1099 form, but he was just using your 1099 since that gets reported to the IRS and I could have made errors in my book keeping.