Does the 1099K Gross income factor in customer returns? If for example, customers buy 10 grand but return half of it before year is out...what's the gross reported?

[paul27]

1099K line 1a shows the gross amount of transactions. But what if customers return products and are refunded. Is that return and refund factored into the 1099K line 1a or not?

[ThomasM125]

The form 1099-K reports gross receipts, so the merchandise returns would not be reflected in the income reported. You report the returns on your tax return as returns and allowances.