Substancial difference between 1099-K and Payment Summary Report
Hello,
I am trying to reconcile the total income reported on my Amazon 2024 1099-K with the Payment Summary Report . There is a discrepancy of over 60K, does anybody have any suggestions or recommendations?
39 replies
Seller_BfFB0O3AtGVPh
The simplest way to complete your taxes (cash basis accounting method) To get your actual net profit before deducting product cost. 1099-k minus deposits for the year= miscellaneous tax deductions for fees and other (you can pull the label costs from the 1099-k or other but there is nothing wrong with just making one miscellaneous line item) This is from my accountant that has been in the business for over 40 years. Anyone that tells you differently doesn't know what they are doing.
Seller_Zw8LsZUQSH440
On a cash accounting basis there is always a difference because disbursements don't match the calendar year. However, deducting marketplace facilitator taxes you should get pretty close to the 1099 numbers.
Seller_wD3lGXBAo9gmB
I have the same issue and found this article which explains what is going on and how to handle it.
"amazons-new-deferred-transactions-policy-what-sellers-need-to-know" posted on the finaloop website. Amazon would not allow posting the link.
I have no connections to this company nor it's products.
Seller_ZvXmWDk2kH4IV
good explanation is here finaloop.com/blog/amazons-new-deferred-transactions-policy-what-sellers-need-to-know. But unfortunately there is no resolution yet. As "Amazon’s 1099-K report still follows the old method (recording sales when deferred), while the Summary & Transaction reports now only recognize sales when released. This is an internal inconsistency within Amazon."
"since Amazon’s own reconciliation instructions in the 1099-K form direct sellers to the Summary & Transaction reports (see below), even though the 1099-K report issued by Amazon is not reconciled with their Summary & Transaction reports."
How to tag somebody from Amazon team?
Seller_1HtNQHjS6l0Dr
I am having the same issue about a 16K difference between my 1099K and repository reports. The biggest red flag is that the form says 0 sales for January, yet I had sales and they can clearly see that on the repository report. I have a case in to Amazon, but I so far no help at all...
Seller_XLZiSK4kjo4wk
I'm having the same difficulty reconciling my 1099k for 2024. I used to have a spreadsheet that helped me analyze and then create a summary of Amazon's detailed reports so that it matched Amazon's 1099k almost exactly - only off by a few dollars, sometimes matching to the nearest penny for the past 4 years. However, in 2024, something changed. I was told that Amazon changed the way they are calculating the 1099k and offsetting it by almost 2 weeks, resulting in a huge discrepancy in 2024. Not sure what started this, but it makes my bookkeeping a nightmare, because we don't know the exact offset and there is no information anywhere on Amazon's website regarding this issue. Does anyone know how to reconcile the numbers?
