Track Your Stripe Income (and the Fees You Can Deduct)
Stripe pays you net of fees. Your 1099-K reports the gross. ExpenseBot logs your Stripe income, separates the deductible processing fees, and reconciles to what actually hit your bank — so your books match reality, not the form.
No credit card. Works with the Gmail and Google Sheet you already use.
The 1099-K trap: gross vs. net
Here's the mismatch that catches nearly every Stripe seller. Stripe deposits your payouts net — every charge already has the processing fee (roughly 2.9% + $0.30) taken out. But the 1099-K Stripe files reports your gross processing volume: every dollar your customers paid, before the cut. Those are two different numbers, and the 1099-K is always the bigger one.
Put the gross figure on your return without deducting the fees and you pay tax on money Stripe kept, not money you kept. On $100,000 of volume that's roughly $3,000 in fees you'd be taxed on for no reason. The fix isn't to under-report — it's to report the gross and deduct the fees, so the two reconcile. That's exactly the reconciliation ExpenseBot automates. (This is educational, not tax advice.)
How ExpenseBot tracks Stripe income
It runs on the same capture engine as our Gmail receipt scanner — so your Stripe income and your business expenses land in the same place. See the full picture on the income & expense tracker.
Stripe fees are a real, defensible deduction
Processing fees aren't a rounding error — they're an ordinary, necessary business expense, which makes them fully deductible. In the US they belong on Schedule C Line 10 (Commissions and fees); in Canada they typically sit on T2125 Line 9270 (Other expenses) or Line 8521. Tracking them as their own line does two things at once: your gross income still matches the 1099-K (so nothing flags), and the fees subtract out so you're taxed on your actual net.
If you also want to pass Stripe's cut back to your B2B clients instead of absorbing it, our guide on rebilling Stripe payout fees to clients walks through the three methods and how each is treated on your return.
See profit, not just payouts
Once income and expenses live side by side, ExpenseBot can answer the question Stripe's dashboard can't: are you actually making money? Tag income and costs by client and you get profit by client — real net after fees, per customer, per month. Ask the chat "profit this quarter" and it nets your Stripe income against your expenses instead of leaving you to eyeball two separate reports.
Getting a 1099-K from more than one platform? The same reconciliation applies across all of them. If you also take PayPal income, track both in one place, and read the deeper walk-through of multi-platform 1099-K reconciliation. Recurring revenue? See the subscription tracker.
Make your books match what you actually banked
Start free, connect Gmail, and watch your Stripe payouts come in already split into gross, fees, and net — reconciled to your deposits and ready for your accountant. Everything lives in your own Google Drive.
Stripe income & taxes — FAQ
Why is my Stripe 1099-K higher than what hit my bank?
Because they measure two different things. Your Stripe 1099-K reports GROSS processing volume — every dollar your customers paid — while your payouts are NET of Stripe's processing fee (about 2.9% + $0.30 per charge). If you report the gross figure as income and don't deduct the fees, you pay tax on money Stripe kept, not money you kept. ExpenseBot logs the gross income and separates the processor fee so your books reconcile to your actual deposits.
Are Stripe processing fees tax-deductible?
Yes. Stripe's processing fees are an ordinary, deductible business expense. In the US they go on Schedule C Line 10 (Commissions and fees); in Canada they typically land on T2125 Line 9270 (Other expenses) or Line 8521. The point of tracking them separately is that your gross income can still match your 1099-K (no mismatch flag), while the fees subtract out so you're taxed on your real net.
How does ExpenseBot track my Stripe income?
Connect Gmail and ExpenseBot's scan picks up Stripe payout and receipt emails automatically, logging each as income by source. In the Income by Source report (My Reports → Summaries) every row shows a Type column (the 1099 form the platform reports on) and a Net column (gross minus fees). When ExpenseBot reads the fee straight from the payout email it shows a (your data) badge; when it falls back to a typical rate it shows (estimated) — click to set your exact rate.
Can I reconcile Stripe payouts to my bank deposits?
Yes. Connect your bank through the income reconciliation (Plaid) flow and ExpenseBot matches Stripe deposits against your Income tab so the numbers line up with what actually landed. For a finished tax year you can pull a full year of deposits through the Year-End Tax Report. This is how you close the gap between Stripe's gross 1099-K and the net you banked.
What's the current 1099-K threshold for Stripe?
For 2026 the federal 1099-K threshold reverted to $20,000 in gross payments AND more than 200 transactions after the One Big Beautiful Budget Act repealed the planned lower thresholds. Some states set lower thresholds (for example MA and MD at $600, NJ at $1,000), so you may get a 1099-K below the federal line. Either way, the reconciliation is the same: report the gross, deduct the fees. This is educational, not tax advice — confirm with your accountant.
Do I need accounting software to do this?
No. ExpenseBot works on the Gmail and Google Sheet you already use — your income, expenses, and fee breakdown live in your own Google Drive, and the exports come out Schedule C / T2125 ready for your accountant. There's nothing new to log into and nothing leaves your Google account.