Why doesn't my 1099-K match my Sales Summary?

[Community-Team]

It seems like there is a discrepancy between my yearly sales summary and the information recorded on my 1099-K. Why would this happen? 

[Sean · Accepted solution]

While this one might seem a little tricky, I'm happy to shed some light on most common reasons this may happen. Check them out: 

1) Square reports your annual gross card payment amount collected, including revenue from card payments that were refunded. Cash and Other Tender payments are not included in the total we report on the 1099-K form.  

2) 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 dashboard shows your transactions in your local time, so there may be small variances if you have transactions that occur between 5:00 pm and midnight in your local time zone. If you're seeing more than a total year variance of 2%, please reach out directly so our Tax Team can have a closer look for you. 

Please remember that in order to qualify for a 1099-K form, you must have taken $20,000 AND 200 credit card payments during the past calendar year.  Check out this post for more details.

Hope this helps! 

[Gabe1]

Thank you.

This is a very good answer as far as refunds are concerned. What about the Square fee? Is the amount on the 1099-K also gross of the fees?

Where in the Suare dashboard can I find the total amounts of both refunds and fees paid to Square?

Thank you!

[katieand]

Hi @Gabe1 - You can find this information in your Dashboard in the Sales section which includes reporting. 

Under the "Sales" section (in the left hand navigation menu), you can find reports including "sales summary." If you change the time frame to the year, you will be able to see totals for everything including refunds and fees taken by Square. 

Check out this article for more on how the figures for the 1099-K are calculated!

[luciotti]

I read about the 1099 including returns amounts. However it still does not explain discrepancies  I found in several months of 2019. I have no returns processed in those months and yet, the discrepancy between my sales report and 1099 is between $90 and $800 (sometimes over, sometimes under). How do I find the answers to that? It makes no sense whatsoever. And I still have to detail all this to my accountant so he can properly file my tax return.

[Joe]

Hi there, @luciotti 👋 Thanks for reaching out to us here on the Community! We will do what we can to make you all of your 1099-K needs are answered.

One discrepancy that is sometimes overlooked is reporting for charged sales taxes. Are your personal reporting numbers including the gross amount you generated for sales tax? We do include the full gross amount over to the IRS for tax reporting.

If this doesn't seem to resolve your issue, you may want to reach out to our Support Team directly for a further deep dive into the contents of the document.

We will keep an eye out for your contact!

[munsing]

I just got off the phone with "support" and she suggested we call the IRS, because "the IRS generates the 1099-Ks". She was no help. 

I found this on my own:

"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 1099-K form." - https://squareup.com/help/us/en/article/6115-1099-k-tax-reporting-information

Tips are included which I had not read on this thread and was not told over the phone.

Still cannot reconcile Square's 1099-K and Transaction Reports.

[comptonwood]

This reply was created from merging an existing thread: 1099-K

WHY IS THE AMOUNT ON MY 1099-K DIFFERENT THAN MY TOTAL TAXABLE SALES FOR THE YEAR?

[Helen]

Hello @comptonwood, I'm moving your post here where we've shared some reasons this can happen. I hope this helps! 

[AA1]

This reply was created from merging an existing thread: My gross sales do not match my 1099.

For example, according to the December 2018 Square report, my gross sales were 2327.50. But my 1099 for December states 2958.13! I just can not figure out these seemingly random sales numbers. For the year, Square shows me collecting $10,410.00, but the 1099 has 10, 993.40 ! What is it that I am missing? Thank you for any help.

[AA1]

I did read the 1099 FAQs and watched the video. Did not solve my problem. 

[VanKalkerFarms]

The number that is reported to the 1099-k is the Gross income from credit card sales which is before refunds.  

https://squareup.com/dashboard/sales/reports/sales-summary

you can see the left column is what is reported as your gross sales. the center column is your refunds, and the right column is your net sales.  Per the 1099-k IRS reporting rules, the number to be reported is the Gross credit card transactions.

another idea is do you have multiple locations?

If somehow those numbers are different than your gross sales data we won't be able to help you here as we don't have access to your data but Square support can help you.

You'll need your customer code to call.  Follow the instructions below on how to get it.

https://squareup.com/help/contact

Click “More”

Click "I don't see my issue"

Click "Call Support"

Write down your Customer Code

Call 1  855  700  6000

Depending on your specific account, you might not have phone support available, or you might have limited hours of support. If your account doesn't have phone support, Email is the only way to communicate so that there is proper documentation of the conversations.

[broxsop1]

i have the same issue did you get any answers on this 

[isabelle]

Please contact us @broxsop1 ✨ 

[broxsop1]

I have been with square since 2017 now i am having doubts my 1099 does not match up with the monthly transaction sheets. they have my gross sales making 8000 more then what i did. 

[AshleyK]

Hi! I'm really sorry to hear the frustration regarding your 1099. I've merged your post to an existing thread that should help answer your question, but always let me know if you have any more questions or concerns. 🙂

[broxsop1]

Thanks i have been reading what others are going threw and seems like square has an issue with the 1099

[Brittk]

I’m so glad to hear I’m not the only one! My account and I have been trying to figure this out. My 1099 shows $2000 more than what my Quickbooks does. It makes no sense because I have them all connected with my bank. I called square support today too and they were no help. Seems like they need to fix this issue. 

[KnotWorkMT]

Hi BRITTK,

Did you find an answer? I am discovering this is the issue as well! I think it may have to do with other and maybe the gift cards. 

[broxsop1]

No answers as of yet guess square will never let us know why

[JJ_]

Hello @KnotWorkMT and @broxsop1! 

Wanted to share some information here regarding 1099-K forms that might help here: 

The amount and transaction count on each form are calculated based on your gross sales for the transaction date(s) of those sales. This includes revenue from card payments that were refunded. Gross sales include taxes and tips collected on a sale if they were charged on a card.

Cash sales are not included in the total we report on Form 1099-K — so, the amount shown on the form may be different from the amount settled in 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 Coordinated Universal Time (UTC). Your online Square Dashboard shows your transactions in your local time, so there may be small differences if you have transactions that occur after either 4:00 p.m. or 5:00 p.m. (depending on daylight saving time) or after midnight in your local time zone.

You can learn more about Form 1099-K and Square here.

I hope this information is helpful!