Last modified: September 19, 2024
I’m a practitioner. Why is my 1099-K reporting a number higher than what I actually earned?
Don’t worry, this is normal. As per IRS 1099-K instructions, we’re required to report the gross amount transacted of payments that we facilitated on your account instead of your net earnings (i.e., income).
It’s understood that the amount listed on your 1099-k is not your net income.
Gross Amount Transacted consists of:
- Fullscript processing fees*
- Cost of goods
- Shipping charges
- Sales Taxes
- Refunded charges
- All adjustments (if any)
*All sales tax and shipping charges are included in the fees charged to you by Fullscript.