The recurring federal and Florida filing dates small business owners need to know, from 1099s and estimated taxes to sales tax, the Sunbiz annual report and DR-405.
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Why your 1099-K doesn't match your books
In short
A 1099-K reports the gross amount processed for you: sales before fees, refunds and chargebacks. Your bank only sees what's left after those come out. That's why the form looks bigger than your deposits. Books that record gross sales, fees and refunds separately make the two numbers reconcile easily.
What the form shows
Payment platforms like Stripe, PayPal and Square send a 1099-K when your payments pass the IRS reporting threshold. It shows the total processed for you during the year, before anything was taken out.
Why it's bigger than your deposits
- Fees come out before the money reaches your bank.
- Refunds and chargebacks are included in the gross, then reversed.
- Sales tax you collected through the platform may be included.
- Non-business payments, like a friend paying you back, can end up in the total if they ran through a business account.
How to make them match
Record each payout at its gross amount, with fees and refunds as separate lines. Then your gross sales in the books tie to the 1099-K, and the fees show up as the expense they are. Your accountant can see at a glance how the form and the return line up.
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