I'm having trouble matching my Etsy 1099K to my spreadsheet.
There are a few things to consider when reconciling your Etsy 1099K to your total Etsy revenue on your Paper + Spark spreadsheet. In this guide I will walk you through what often causes differences between your Etsy Seller Spreadsheet (based on the Orders CSV) and your Etsy 1099K.
First, make sure you're matching apples to apples. The 1099K from Etsy includes shipping received, sales tax collected (NOT marketplace sales taxes collected though), and is BEFORE any refunds, cancelled orders, or fees are subtracted out.
To match it to your Etsy Seller Spreadsheet, make sure you are adding together the three blue revenue rows on your spreadsheet for Etsy Sales, Sales Tax Collected (which is likely $0 for you), AND Shipping Received.
If you are still off, the differences are almost always due to the following:
➡️ cancelled orders - which are included on your 1099K but not listed on your Orders CSV
➡️ Square sales - if you have a Square card reader synced to your Etsy shop, those sales are on your Orders CSV but NOT part of your 1099K, since they aren't payments processed by Etsy
➡️ Gift wrap revenue - if you turn on the ability to charge customers a flat rate for gift wrap, that revenue is on your 1099K but not on your Orders CSV
Let's walk through how to find your cancelled orders.
For whatever reason, Etsy includes cancelled orders that you fully refunded in your 1099K revenue, but they do NOT include these sales on your Orders CSV (the one you import into your Etsy spreadsheet).
How to check for those cancelled orders:
Download your Etsy Payment Sales CSV from your Etsy dashboard. This is the file that matches to your 1099K.
Filter this CSV for any orders that have "0" in columns K, L, and M. These are orders that you fully refunded. Note that you may have fully refunded some orders but not necessarily cancelled them. We are only looking for those you actually cancelled - these are the only ones that cause 1099K differences.
Looks at the order IDs in column D for these fully refunded orders, and search your Orders CSV (over on your Paper + Spark spreadsheet) for those order IDs. You can use the "Find" function in your spreadsheet software.
Any Order IDs that are not found on your Orders CSVs are cancelled orders. If you add these total cancelled orders back to your Etsy Seller Spreadsheet total revenue, this SHOULD match your 1099K Etsy Revenue (unless you also have differences due to Square sales and/or gift wrap revenue). When adding back the cancelled order, you want to use the amount in column E (gross amount) of your Etsy Payments CSV. Do not use column Z refunds, because those amounts include marketplace sales taxes.
If it all matches up, you really don't need to do anything. Rest easy that your books are correct! If you feel comfortable and really want your spreadsheet to match exactly to your 1099K, you can add back the cancelled orders to your Etsy sales on your spreadsheet, but then you must make sure to subtract them out on the refunds row again.