Etsy sellers
Your Etsy “profit” is wrong
Etsy pays you after fees. Your 1099-K reports before fees. If your books only show the deposit, you are overpaying tax and underclaiming deductions, every month.
The real math
Where a $50 sale actually goes
The 1099-K trap: the IRS gets your gross sales. If your books show only deposits, your return will not match what the IRS already has, and the difference is fees you could have deducted.
The fix
Three moves, once a month
- 1
Export
Download the payment account CSV from Etsy. It has gross, fees and deposits in one file.
- 2
Upload
Drop it in with your bank statement. Gross sales and every fee are recorded separately, and deposits are matched to the bank.
- 3
Read
Your P&L now shows real revenue, real fees and real profit. The 1099-K matches by construction.
FAQ
Questions, answered
Which report has the real numbers?
The Etsy payment account CSV. It lists gross sales, every fee and every deposit. Upload that alongside your bank statement and both sides of the story are recorded.
Are Etsy fees tax deductible?
Yes, fully. That is exactly why recording them separately matters: skip it and you pay tax on money Etsy already kept.
Does this apply to Amazon, eBay or Shopify too?
Same trap, different names. Every marketplace deposits net of fees, and every 1099-K reports gross. The fix is identical: record from the payout report, not the bank line.
Know your real Etsy profit tonight.
Create a free account, drop in a bank statement, and watch every transaction get categorized. 100 free credits to start, 10 more every day. No card required.
Takes about 90 seconds. No sales call, no onboarding fee, no contract.