RATATOUILLEGot a 1099-K? Reconcile it before you prepare your return.
A 1099-K reports gross payment transactions; it does not calculate profit or tax due. Payment apps and marketplaces generally must report when business payments exceed $20,000 across more than 200 transactions, though a form can arrive below that threshold and payment-card rules differ.
A 1099-K is a gross reporting figure — not profit or tax due.
The form may include payments for orders later refunded because gross reporting is not reduced for fees, refunds, credits, or similar adjustments. Personal payments should not be reported, but errors can happen and should be raised with the payment app.
Your return still has to account for business receipts consistently, along with refunds, cost of goods sold, fees, and other allowable expenses. A reconciliation connects the form to those underlying records without double-counting payments.
Turn the form into a bookkeeping reconciliation.
Suppose a payment app reports $24,800. Your records might bridge that gross figure to the amount carried into the rest of your books like this:
Reconcile it to real sales — and keep the receipts.
Match the form to the underlying transactions and preserve the support for every adjustment. If the form itself is wrong, contact the issuer and request a correction.
- Match the 1099-K total against what you actually sold through that app.
- Document refunds and identify any personal payments or processor errors.
- Keep gross receipts, adjustments, cost of goods sold, and expenses in their proper places.
- Fold cash and crypto sales into the same books so your total income is one clean figure.
Type in the gross. It does the reconciliation — on your machine.
Ratatouille is a free desktop app that reconciles each 1099-K against your real sales, spells out exactly what to explain, and rolls cash and crypto into one clean set of books and a CPA-ready Schedule C.
Nothing is fetched or sent — you enter the figure off your form and it does the math locally. Your entire sales history stays in one file you control: no account, no sign-in, nothing uploaded to anyone's server. Spend Bitcoin too? It tracks your cost basis (FIFO / LIFO / HIFO) and exports a Form 8949 the same way.
Straight answers.
Is this tax advice?
No — it's plain-English education to help you keep good records and ask better questions. Confirm your specifics with a CPA or enrolled agent. Ratatouille is record-keeping software; it doesn't file for you.
Do I need an account or to upload anything?
No. It runs entirely on your computer, in one local file you can back up. There's no server holding your sales or customers — you type the 1099-K figure in yourself.
I take cash and crypto too. Does that fit?
Yes — that's the point. Every dollar, however it arrived (app, cash, or Bitcoin), lands in one set of books, so your income is one number instead of three piles you're guessing at in April.
What does it cost?
The tax + inventory side is free (the Lite tier). The full operator toolset (clients, forecasting, reporting) is a paid upgrade you can pay for in Bitcoin — but you don't need it to reconcile a 1099-K.
Don't overpay on money you never made.
Download the free app, or read the full plain-English guide first. No account, no obligation — everything stays on your machine.