Roku Developer Program

[StevenEsqTwo]

Greetings. 

We just got our annual 1099K from Roku and very confused.  Does ROKU report earnings on the 1099K calculated on gross revenue (before taking its fee) or what?  We ask because the amount reported as earned each month is FAR higher than what we actually got paid by ROKU.

By way of example: Let's say our 1099K says we earned $10K and that is the amount reported as income.  Our Paypal account, however, says we only received $7K from ROKU for the same time period.

What gives?  Is the difference ROKU's share?   

[renojim]

The 1099K you receive is all but useless.  It reports the total revenue Roku received on the dates they received it, so anything they received in December you won't receive until January, but it's on that 1099K.  The same thing goes for the amount you received last January which would have been reflected on the 2021 1099K.  I don't know how it's supposed to be handled on your personal tax return, but I add a "1099K adjustment" to my return to bring the total inline with what I actually received and when I actually received it.  So far I haven't heard anything from the IRS telling me I'm doing it wrong, but if there's any tax experts out there I'd like to know how it's supposed to be handled.

[StevenEsqTwo]

That sounds about right.  There is actually a bulletin on the Knowledge Base about this.  It appears my suspicion was correct; ROKU is reporting the gross sales (including sales tax) before taking its 20% revenue share.  We have handled by reporting the full amount and then backing out the ROKU share and other expenses.  I seems very similar to your 1099k "adjustment" solution.