1099-K from Arketa Merchant Services (powered by Stripe):
Why Your Totals May Not Match
If you received a 1099-K form for Arketa Merchant Services (powered by Stripe) and noticed that the total does not match your Arketa reports or the deposits in your bank account, you are not alone. This is one of the most common questions we receive during tax season.
In most cases, these differences are expected and are related to processing dates, payout timing, and time zone differences rather than errors in reporting.
This article explains why these mismatches happen and how to reconcile your numbers accurately.
What is the 1099-K Reports
Your 1099-K reflects the total amount of payments processed during the calendar year, based on Stripe's processing records.
Important points to understand:
The 1099-K is based on processed transaction dates, not payout dates
The form reports gross payment volume, before refunds, fees, or chargeback
Stripe generates the 1099-K using UTC (Coordinated Universal Time)
Because of this, the totals on your 1099-K may not align exactly with reports inside Arketa or with deposits shown on your bank statements.
Why 1099-K Totals May Not Match Arketa Reports
Time Zone Differences
Arketa displays transactions in your local time zone, while Stripe processes transactions in UTC. This difference becomes especially noticeable at the beginning and end of the year.
Example: A payment made late on December 31 may appear in Arketa as part of that year. The same payment may process after midnight in UTC, so Stripe records it as a transaction for the following year — and it appears on the following year's 1099-K. The reverse can also happen for transactions made late on December 31 that appear in Arketa for the previous year but were processed by Stripe in the following year.
Why 1099-K Totals May Not Match Bank Deposits
Processed Amounts vs Payout Amounts
The 1099-K reflects what was processed, not what was deposited. Bank deposits can differ due to processing fees, refunds issued after the original transaction date, chargebacks, and payout timing that crosses into a different calendar year.
For example, a payment processed on December 31 may not be deposited into your bank account until January 1 or later. That payment still belongs to the year it was processed, not the year it was deposited.
Common Scenarios That Cause Differences
These scenarios are normal and do not indicate a reporting error: payments processed late on December 31, payouts that occur in early January, refunds issued after year end, transactions affected by UTC time conversion, and comparing gross processed amounts to net deposits.
How to Reconcile Your Numbers
To accurately reconcile your totals, use the payout reports in Arketa. Export all payouts for the year, plus one payout from before year end of the prior year and one payout from after year end of the current year — this ensures you capture all transactions that may have crossed over due to payout timing. Once you have your exports, filter transactions for charges only and review dates in UTC time to match how Stripe records them on the 1099-K.
If you work with an accountant or tax professional, provide them with both your payout reports and your Stripe 1099-K for proper reconciliation.
Frequently Asked Questions
Q: Why does my 1099-K include transactions I do not see in my bank deposits?
A: The 1099-K reports gross processed amounts, not payouts. Bank deposits reflect net amounts after fees, refunds, and adjustments. Transactions processed at the end of the year may also be deposited in the following year.
Q: Why is my 1099-K higher than my Arketa sales reports?
A: This is most often caused by time zone differences. Arketa reports transactions in your local time zone, while Stripe processes transactions in UTC. Payments made late in the evening on December 31 may appear in different years depending on which system you are reviewing.
Q: Do refunds reduce the amount shown on my 1099-K?
A: No. Refunds do not reduce the gross processed total shown on the 1099-K. Refund activity is reflected in your internal reports and bank activity, but not subtracted from the form total.
Q: What about failed, canceled, or voided transactions?
A: Only successfully processed payments are included on the 1099-K. Failed or fully voided transactions or cash payments are not reported.
Q: I see transactions on January 1 that I expected on the prior year. Is this normal?
A: Yes. Transactions processed late on December 31 in your local time may be recorded by Stripe as processing on January 1 due to UTC time conversion. Those transactions will appear on the following year's 1099-K.
Q: Can Arketa adjust or correct my 1099-K?
A: In some cases, yes, but many do not require an updated 1099-K. If your 1099-K has the wrong address, Stripe will not re-issue a corrected form — contact our support team and we can help get your address updated in Stripe so future 1099-Ks will reflect the correct information. If your merchant account is set up as an individual or sole proprietor, Stripe uses the SSN of the main representative/owner as the tax ID and a new 1099-K does not need to be issued. If you are a single-member LLC and use a Schedule C to report business taxes on your personal return, your 1099-K will use your SSN, not your EIN. Stripe generates and issues 1099-K forms — contact Arketa support if you believe there is a legitimate error on your form.
Q: Who should I contact if I believe my 1099-K is incorrect?
A: If you believe there is an actual error on your 1099-K, contact Arketa support at support@arketa.com. For tax filing guidance, consult a qualified tax professional.