Amazon 1099-K Associated Tax Form for Sellers

 

In today’s article, we are going to tell you about how the figures from the Amazon 1099-K form are calculated. In fact, sellers cross the threshold of Amazon 1099-K if they have more than $20K payments processed within 200 transactions. If you sell less, this form won’t be your concern.

 

Many people ask: “Do I have to report Amazon sales on my taxes?”, still, the answer to this question is obvious and clear to all entrepreneurs who work according to the law. If you wonder whether you have to report your sales on Amazon on the taxes - yes, you do, as you need to report ANY income. For this, the form will have a field with the income taxes to the IRS. For learning more details on Amazon 1099-K form, visit the official IRS website.

 

This fact can be a bit confusing for those who are just getting started with selling on Amazon. Nevertheless, there are only 6 figures which are to add to see the total of the Amazon 1099-K form. All of them can be found in this report, and the process of calculating commonly takes not more than five minutes.

 

Here is a step-to-step guide for reconciling the Amazon 1099-K form.

 

Step #1

First of all, you should access your Amazon 1099-K form online:

  1. Login into the Seller account on Amazon.
  2. Find the list of different reports.
  3. Find and select ‘Tax document library’.
  4. Download your Amazon associates tax 1099-K form in the PDF format for the current tax year.

 

Once you’ve downloaded the form, it shows the total amount of tax payments from Amazon on your behalf. What is shown in the 1a box in the Amazon 1099-K stands for your total sales for the current tax year.

 

Step #2

Next, run another tax report which demonstrates what amounts from Amazon belong to 1099-K. Here is what you need to do:

  1. Login into the Seller account on Amazon.
  2. Go to ‘Reports’ at the screen top.
  3. Visit the ‘Date range reports’ tab.
  4. Generate a report.
  5. Select settings: ‘Custom’, ‘Summary’, select the date range for the current tax year.



  6. Select ‘Generate’.
  7. Download your date range report.

 

After you’ve got your report, look at several specific numbers like those specified in the list below:

  • Product sales (non-FBA).
  • FBA product sales.
  • Promotional rebate refunds.
  • Gift wrap credits.
  • Shipping credits.
  • Shipping, sales and gift wrap tax collected.

 

These are six numbers you need to reconcile the Amazon 1099-K form. Calculate the sum of these numbers and check whether this sum matches to the number in the a1 box of your Amazon 1099-K report.

 

The Bottom Line

We hope that this short manual will help you to check your taxes in the Amazon 1099-K form. Generally, taxes are not the most interesting part of Amazon business, still, this part is inevitable for every online seller.

 

So, you now know how to deal with Amazon tax forms and how to find your Amazon account activity report.