Why does the 1099K Roku issued appears to report more money than I actually got paid?

Issue

1099K tax form report looks inaccurate.  

Environment

SDK

Roku Pay

Answer

Roku is reporting cash received (which includes sales tax) on the 1099K, not cash paid out (i.e. income). Your 1099K will show total transactions made on the platform on your behalf, which will show a higher monthly amount than your actual partner payout (due to the 80% revenue share on all transactions).   

Per the 1099K rules:

“All payments made in settlement of payment card transactions (e.g., credit card); Payments in settlement of third party network transactions IF: Gross payments to a participating payee exceed $20,000; AND There are more than 200 transactions with the participating payee.”

Also please note, the 1099k form is not reported on your tax filing. The form mostly is a way the IRS tries to track money laundering and cash collected on behalf of another. 

For further information on the IRS from 1099-k, please refer to the IRS website.