How should I handle cancelled sales?

Good question, this is platform dependent. Our recommendation is to google, "Does [your platform] include cancelled sales include cancelled sales in the 1099k total?"

If the platform does include cancelled sales in the total, the best policy is to record the sale and then record a return for it. That ensures that your revenue total will match the 1099K, but you also have a return recorded to cancel out the revenue.

If the platform does not include cancelled sales in the total, you should not record a sale for the cancelled sale.

Platforms that do not include cancelled sales in the 1099-K total

• eBay: eBay and Form 1099-K | eBay
• Mercari: 1099-K related FAQs - Mercari: Your Marketplace

Platforms that do included cancelled sales in the 1099-K total

• Poshmark: Why are my cancelled sales included in my Form 1099-K?
• Etsy: How Is the Total on My 1099-K Calculated? – Etsy Help