Reconciling Your Stripe 1099-K in Xola
Learn how to reconcile your Stripe-issued 1099-K with Xola reporting by understanding gross transaction volume, refunds, timezone differences, payouts, and tax reporting best practices.
The 1099-K form reports the total gross payment volume processed through your account during the tax year. This means it reflects every qualifying credit card transaction that ran through your payment processor, before anything is taken out. The amount shown includes the full value of successful charges, even if part or all of those amounts were later refunded, disputed, or reduced by processing and booking fees.
Because the 1099-K captures gross transaction activity rather than your actual take-home or net earnings, it is normal and expected for the totals on your 1099-K to differ from the figures you see in Xola reports or in your bank deposits. Xola’s Earnings and payout reports focus on what your business actually keeps after fees, refunds, chargebacks, and other adjustments, while your bank statements show what was ultimately transferred to your account.
As a result, the 1099-K should be viewed as a starting point for tax and accounting purposes, not a reflection of your true profit. When reconciling your numbers, you’ll want to use your Xola reports to identify refunds, fees, and other deductions that explain the gap between your 1099-K gross total and your net revenue and payouts.
User Access: Primary roles have access to Stripe 1099K.
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What's covered in this article:
Understanding the 1099-K form
A 1099-K reports the total gross volume processed through your account during the calendar year before any deductions, including:
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Refunds
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Credit card processing fees
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Booking fees
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Disputes and chargebacks
Stripe, your payment processor automatically generates the 1099-K using credit card transactions processed through your Xola account.
The form is organized by month and reflects all qualifying credit card activity for the year.
Important: The 1099-K only includes credit card transactions. Other payment methods are not included because the IRS defines the 1099-K specifically for card-based payment processing.
Should I Have Received a 1099-K?
You generally receive a 1099-K if your account processed:
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More than $20,000 USD in gross payment volume
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AND more than 200 credit card transactions during the tax year
Requirements may vary depending on IRS regulations and state-specific reporting thresholds.
Why Your 1099-K Does Not Match Xola Reporting
It is expected that your 1099-K totals will not match your Xola Earnings Report or bank deposits.
This happens because the 1099-K reports gross transaction volume, while Xola reporting is focused on actual earnings and payouts.
Example
If you process a $100 booking and later issue a full refund:
The 1099-K may still show $100 in gross processed volume
Depending on timing, refund activity may also appear separately
Your Xola Earnings Report would show $0 earned revenue
The 1099-K includes all money that moved through your account, even if those funds were later refunded or deducted through fees.
UTC Adjustment Explanation
Stripe generates 1099-K reporting using Coordinated Universal Time (UTC).
Xola reporting is typically displayed in your local business timezone.
Because of this timezone difference, transactions processed late in the evening may appear on different dates between Stripe and Xola reports.
Example
A transaction processed at:
December 31 at 7:30 PM Pacific Time
Would appear in UTC as:
January 1 at 3:30 AM UTC
This can cause monthly or yearly totals to appear slightly different when comparing reports directly.
When reconciling reports:
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Expect some transactions near midnight to shift dates
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Focus on annual totals rather than exact daily matching
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Export transaction-level data when investigating discrepancies
Refund Handling
Refunds are one of the most common reasons for differences between your 1099-K and Xola reporting.
Important Refund Notes
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Refunds may still contribute to gross volume totals on the 1099-K
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Refund timing can impact which tax year the adjustment appears in
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Some payment processors only allow refunds within 120–180 days of the original transaction
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Once funds have been paid out and fully settled, additional charges cannot be applied against the original transaction
Because the 1099-K reflects gross transaction movement, refunded bookings can cause totals to appear inflated compared to actual earnings.
How to reconcile your 1099K
To determine your actual earnings for tax purposes, use Xola reporting alongside your 1099-K.
Review Your Earnings Report
Navigate to Reports → Earnings Report
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Select the full tax year date range
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Locate the total for Credit Card Earnings
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Record this amount
This figure represents your net credit card earnings before external accounting adjustments.
Export Transaction Reporting
Navigate to to Reports → Transactions Export
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Filter the Method column to Credit Card
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Export the report
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Review the Net column totals
The total Net amount should align closely with your Credit Card Earnings total from the Earnings Report.
This export provides transaction-level detail you can use for accounting and reconciliation purposes.
Compare Against Your 1099-K
Now, calculate the difference between:
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Your 1099-K Gross Amount
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Your Xola Credit Card Earnings total
The difference typically represents items such as:
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Processing fees
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Refunds
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Booking fees
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Chargebacks or disputes
When filing taxes, accountants commonly classify these differences as platform or payment processing deductions.
Disputes and Chargebacks
Disputes and chargebacks are handled through the payment processor and may still appear within gross processing totals on the 1099-K.
Depending on timing and resolution status:
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The original charge may remain included in gross volume
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Reversals or dispute adjustments may appear separately
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Final payout amounts may differ from reported gross totals
Frequently Asked Questions
Why is my 1099-K higher than my actual revenue?
The 1099-K reports gross transaction volume, not net earnings. It includes refunds, fees, and other payment activity that may not represent actual revenue retained by your business.
Why doesn’t my bank deposit total match my 1099-K?
Your bank deposits reflect net payouts after deductions such as:
Refunds
Processing fees
Booking fees
Disputes
The 1099-K reflects gross processed volume before these adjustments.
Why do my Stripe and Xola dates sometimes differ?
Stripe reports using UTC timezone formatting, while Xola reports typically use your local business timezone. Transactions near midnight may appear on different calendar dates.
Can I use the Xola Earnings Report for tax reporting?
Yes. Many businesses use the Xola Earnings Report and Transactions Export to help reconcile actual earnings against their 1099-K totals.
You should always consult your accountant or tax professional for official filing guidance.
Do refunds reduce my 1099-K amount?
Not always in the way you may expect. Because the 1099-K reflects gross transaction activity, refunded transactions can still contribute to the reported totals.
Can I issue refunds for old transactions?
Most payment processors only allow refunds within approximately 120–180 days of the original transaction date.
Why are only credit card transactions included?
The IRS defines the 1099-K specifically for card payment processing. Non-credit-card payment methods are not included on the form.
What documentation should I provide to my accountant?
Recommended documentation includes:
Your 1099-K form
Xola Earnings Report
Transactions Export filtered to Credit Card payments
Any payout reconciliation worksheets
Refund and dispute reporting, if applicable
For more information about IRS 1099-K requirements and reporting guidance, visit: