2026 tax season — reconcile your 1099-K before April 15

Your 1099-K says $90,690. You actually earned $74,209.

Refunds, chargebacks, processing fees, and the sales tax you merely collected are all baked into that gross number — but none of it is income. TaxMatch subtracts them across Shopify Payments, PayPal, and Stripe and generates a CPA-ready worksheet in minutes.

$20K

Federal 1099-K threshold

$150+/hr

Typical CPA rate

3

Processors, one worksheet

<5 min

Time to reconcile

AES-256 encrypted
SOC 2 infrastructure
Bank-level security
CPA-ready format
The Problem

The 1099-K problem

Payment processors report your gross volume to the IRS. But that number includes refunds, chargebacks, fees, and sales tax — money you never kept. The result? Your 1099-K can overstate your actual taxable income, sometimes by thousands of dollars.

What the IRS sees

Form 1099-K

$90,690.00

Gross payment volume reported by Shopify Payments, PayPal, and Stripe combined.

Shopify Payments: $52,410.00

PayPal: $26,180.00

Stripe: $12,100.00

Your actual income

After TaxMatch reconciliation

$74,209.41

Actual taxable income after all IRS-recognized adjustments.

Refunds & Returns-$8,412.30
Processing Fees-$3,620.70
Sales Tax Collected-$2,894.00
Chargebacks-$1,553.59
Total Adjustments-$16,480.59

Without reconciliation, you could overpay taxes on $16,480.59 of non-income payments.

Features

Everything you need for 1099-K reconciliation

Built for e-commerce sellers who are tired of guessing why their 1099-K doesn't match their actual income.

Multi-Processor Reconciliation

Connect Shopify Payments, PayPal, and Stripe. TaxMatch consolidates all your 1099-K forms into one reconciliation.

IRS-Ready Worksheet

Generate a professional PDF reconciliation worksheet you can hand to your CPA or attach to your tax filing.

Automatic Adjustments

TaxMatch deducts refunds, chargebacks, processing fees, and sales tax — showing why your 1099-K is higher than actual income.

Discrepancy Detection

Automatically finds and explains differences between your 1099-K and calculated gross, with severity ratings.

Quarterly Pre-Checks

Don't wait until tax season. Get quarterly snapshots so you're never surprised by a discrepancy.

Works With or Without Shopify

Use as a Shopify embedded app or as a standalone web SaaS. Same data, same experience.

See your gap

What does your 1099-K actually leave you?

Move the sliders to see how much of your reported gross isn't income — no signup, just the math.

$
Processing fees2.9%
Refunds9%
Sales tax collected6%
Chargebacks1%

Illustrative — adjust to your own numbers. Shopify Payments & Stripe are typically 2.9% + 30¢.

Reported to the IRS (gross)$90,690
Refunds-$8,162
Processing fees-$2,630
Sales tax you collected-$5,441
Chargebacks & disputes-$907
What you actually kept$73,550

Without reconciliation, you could overpay tax on $17,140 of money that isn't income.

The multi-processor trap

Sell on more than one processor? You'll get more than one 1099-K.

Shopify Payments, PayPal, and Stripe each issue their own form. The IRS expects your reported income to reconcile with the sum of all of them — and this is exactly where manual reconciliation goes wrong.

PayPal isn’t in your Shopify 1099-K

PayPal issues its own separate form. Miss it and your return can look like it underreports income — a mismatch the IRS flags automatically.

Combine and de-dup — carefully

Two or three forms have to be summed without double-counting overlapping transactions. TaxMatch reconciles every processor into one clean worksheet.

The “available on” payout trap

Processors report by payout date, not order date — so a December sale can land on next year’s 1099-K. A spreadsheet quietly gets this wrong; TaxMatch accounts for it.

3 forms1 reconciliation

256-bit SSL

All data encrypted in transit

IRS-Method Worksheet

Follows the IRS’s own method

Bank-Level Security

AES-256-GCM encryption at rest

SOC 2 Readiness

Enterprise compliance standards

How it works

Three steps to tax clarity

Go from confused about your 1099-K to handing your CPA a professional worksheet in under 5 minutes.

1

Connect

Link your payment processors or upload transaction data. Shopify Payments, PayPal, and Stripe auto-connect in seconds.

2

Reconcile

TaxMatch maps your 1099-K gross to actual income — deducting refunds, fees, chargebacks, and sales tax automatically.

3

Report

Download an IRS-ready reconciliation worksheet (PDF + CSV) to hand to your CPA or attach directly to your filing.

Dashboard

See the full picture at a glance

Your reconciliation summary, processor breakdown, and IRS worksheet — all in one clean dashboard.

app.taxmatch.app/dashboard

Reconciliation Overview

Tax Year 2025 — 3 processors connected

All Reconciled

1099-K Gross

$90,690.00

Reported by processors

Actual Income

$74,209.41

After adjustments

Total Adjustments

-$16,480.59

18.2% of gross

Discrepancies

0

All clear

Adjustment Breakdown

Refunds & Returns-$8,412.30
Processing Fees-$3,620.70
Sales Tax Collected-$2,894.00
Chargebacks-$1,553.59
Reconciled3 processors connected
Last synced: 2 min ago
Pricing

Simple, transparent pricing

Pick the plan that fits your business. Upgrade or downgrade anytime.

Standard

For individual sellers with one store.

$9.99/mo
  • Up to 2 payment processors
  • Annual reconciliation worksheet
  • PDF + CSV export
  • Email support
Start Free Trial
Most Popular

Pro

For growing sellers with multiple processors.

$19.99/mo
  • Unlimited payment processors
  • Quarterly pre-checks
  • Discrepancy detection
  • CPA sharing & collaboration
  • Priority support
Start Free Trial

Premium

For high-volume sellers and agencies.

$34.99/mo
  • Everything in Pro
  • 5 years of reconciliation history
  • Estimated tax calculator
  • Audit-defense templates
  • Custom report branding
Start Free Trial

All plans include a 30-day free trial. No commitment required.

Comparison

TaxMatch vs manual reconciliation

Stop wrestling with spreadsheets. See why sellers switch to TaxMatch.

Category
TaxMatch
Manual / CPA
Time to reconcile
Under 5 minutes
4+ hours
Accuracy
CPA-grade method
Formula-error prone
Cost
From $9.99/mo
$200+/hr (CPA)
Payment processors
Unlimited (Pro+)
Manual tracking
IRS-ready worksheet
Auto-generated
Build from scratch
Quarterly checks
Automated
Not practical
Discrepancy alerts
Real-time
End of year surprise
CPA collaboration
Built-in sharing
Email back and forth
FAQ

Frequently asked questions

Everything you need to know about 1099-K reconciliation and TaxMatch.

What is 1099-K reconciliation?
Your 1099-K reports gross payment volume — before refunds, fees, and taxes. Reconciliation maps the difference between that gross number and your actual taxable income, so the IRS doesn't think you underreported. TaxMatch automates this by categorizing every adjustment (refunds, chargebacks, processing fees, sales tax) and producing a clear worksheet.
Do I need a Shopify store?
No. TaxMatch works as a standalone web app. You can import transactions via CSV or connect PayPal/Stripe directly. Shopify integration is optional — if you have a Shopify store, you can also install TaxMatch as an embedded app for even tighter integration.
How does the 30-day free trial work?
Every plan includes a 30-day free trial. You get full access to all features in your chosen plan. If you don't subscribe before the trial ends, your account is paused until you pick a plan.
Is my financial data secure?
Absolutely. All processor credentials are encrypted with AES-256-GCM. Transaction data is stored encrypted in PostgreSQL on SOC 2-aligned infrastructure. We read your transaction data — we never move your money. All API calls use TLS, and we never sell or share your data.
What payment processors are supported?
TaxMatch supports Shopify Payments, PayPal, and Stripe out of the box with automatic syncing. You can also import data from any processor using CSV upload. We are continuously adding new integrations.
Can my CPA access my data?
Yes. On Pro and Premium plans, you can invite your CPA or accountant to view your reconciliation data and download worksheets. They get read-only access to exactly what they need — nothing more.
My CPA already handles my taxes — do I need this?
TaxMatch hands your CPA a finished reconciliation instead of billable hours spent building one — you save time and money, and the worksheet stays on file. A generalist accountant also often misses e-commerce-specific issues like payout reconciliation and fee categorization. Since you sign the return, owning clear documentation is prudent either way.
What if the IRS sends me a mismatch notice (CP2000)?
The IRS's automated system compares your return to the gross on your 1099-K. If they don't reconcile, it can issue a CP2000 notice — even when you owe nothing — with a short response window. TaxMatch produces the documented, line-by-line worksheet that shows exactly why your income is lower than the gross, so you can respond with confidence, or avoid the mismatch in the first place.
How is this different from QuickBooks, A2X, or Synder?
Those are accounting-sync tools that require a paid QuickBooks or Xero subscription and cost 3–4x more. TaxMatch is the only standalone 1099-K reconciler — it does one job exceptionally well (turn your 1099-K into a CPA-ready worksheet) with no accounting platform required.
What happens after my trial expires?
If your 30-day trial ends without selecting a paid plan, your account is paused. Your data is preserved — nothing is deleted. Once you subscribe to any plan, your account reactivates immediately with all your data intact.
How accurate is the reconciliation?
TaxMatch accounts for every adjustment category the IRS recognizes — refunds, chargebacks, processing fees, shipping, and sales tax. It follows the same line-by-line worksheet method your CPA would calculate manually, in a fraction of the time, across all connected processors.

Stop guessing. Start reconciling.

Your 1099-K reports gross — not what you actually kept. Refunds, fees, chargebacks, and sales tax all inflate the number. TaxMatch explains every dollar of the gap.

30-day free trial on every plan. Full access. No commitment.

Sister apps for Shopify sellers: SmartCash · ProfitShield · all JMS Dev Lab apps