A TCP data sequence number names the first payload byte in the stream.
Sequence number marks the first byte
After the handshake, this client is ready to send byte position 1001. The sequence field on the data segment names that first payload byte.
data seq=1001
The server side has its own count
The same segment acknowledges the server's next byte position, 5001. Client and server byte streams are counted separately.
ack field=5001
Not an offset inside the packet
Sequence 1001 is not byte zero of this packet. It is the connection's running byte count.
connection byte=1001
Summary
The first byte of payload hi is carried at sequence 1001.
first payload byte=1001