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?
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_nRFmxiQg4EGrw
The 1099K includes any sales tax that was collected and remitted by Amazon; that amount is listed on page 2 of the form, and should be deducted out when filling out Schedule C. Your payment summary report will not show those taxes.
AFAIK, Amazon is the only marketplace that does this; it doesn't seem proper, but it's there (at least, it has been in the past; I've not started working on 2024, so haven't looked at the current one).
Seller_rRYxDjEstC2nV
Have similar problem. On page two is provides instructions on how get the transaction level details that makeup the numbers on the 1099K and from the same page you can get a summary of that same data. However, the sums from these three sources are significantly different from the 1099K and somewhat each other for the same timeframe.
I’ve tried to narrow in on just the Product Sales data point (page 2 of the 1099K), hoping that if I can get the date range on the other reports get matching (or close) Product Sales figures then I would be able to calculate the rest. But not luck my Product Sales are about $5,400 lower than what the 1099 shows. (i'm a small seller)
If just the product sales number is not accurate, I can't begin to calculate the following data points.
Please help.
Seller_hGsu16iOBbLk0
For us, the issue is because the Repository Report does not include Amazon Deferred Transactions. For some sellers Amazon is not allocating sales revenue until up to 7 days after the product delivery date.
You can find discrepancies if you compare your shipped units on your Inventory Ledger versus the units ordered on the Repository Report.
Seller_ZvXmWDk2kH4IV
so how to reconcile now report with 1099-k? I also have the same issue. A difference in figures from 1099-k and summary report
Seller_xo4Akj7FBBnfC
Businesses have some flexibility to determine their closing date rules for income and expense transactions, provided those criteria make sense and are consistent from year to year. Our rule is, "we report to the IRS what Amazon reports to us."
We use the monthly Sales Summary reports to record Amazon income and expenses in QuickBooks every month, so at the end of the year our reported income always matches the annual Summary Report.
Even though this might result in reported income that has differed from the 1099-K by about $50 for every $100,000 in income, our tax forms always exactly match the annual Summary Report - so they should be much easier to defend in the event of an audit.
It doesn't seem efficient to adjust your books for every deferred transaction, since any transaction not appearing in one period will appear in the next, and the IRS gets paid either way.
We also don't make those ad-hoc 'deferred transaction' adjustments to our books because this would be error-prone – and much more difficult to document in the event of an IRS audit.
Seller_xo4Akj7FBBnfC
We use the monthly Summary Report in the Seller Central 'Reports Repository' to record Amazon income and expenses in QuickBooks every month, so our QuickBooks P&L shows sales and expenses that look like the image below... plus other income and expenses that Amazon doesn't know about like sales from other channels, cost of goods sold, salaries, utilities, etc.
We sell on Amazon only by FBA, so our P&L doesn't have a 'Product sales (non-FBA)' entry under the Sales category.
As you can see, there are negative entries ('-') under both Sales and Expense - which is counterintuitive but required according to the instructions on the back of your 1099-K.
At the end of the year, our Amazon income in QuickBooks always exactly matches the full-year Summary Report, and we report that income to the IRS even though the total always seems to differ from the 1099-K by around $0.50 for every $1,000 in income.
Others have stated that the difference between the full-year Summary Report and the 1099-K is because Amazon uses inconsistent transaction cutoff times for the two reports.
We report to the IRS the income from the Summary Report - not the 1099-K - because in the event of an audit we can easily document that Amazon's reports exactly match our reported income.
Seller_vrZMtvicCEh0U
Where in Amazon do you find these expenses in a clear easy to rear format?
I have yet to find that in the reports section. Perhaps I have not looked properly.
Seller_xo4Akj7FBBnfC
In Seller Central, the Date Range Summary Report for the previous month or year can be downloaded on the Payments page, by clicking the 'Reports Repository' tab.
Under Report Type click 'Summary', choose the required date range, and click the 'Request Report' button.
Summary reports are in PDF format.
Seller_8MkHjbVu19jQh
This is the exact info I was given by my accountant. The 1099k is an informative document Amazon has to file with the IRS for their accounting. To accurately calculate income, my accountant suggested keeping records of my income. We spent a lot of time trying to make sense of the figures on the 1099k and though we could get close, it was never completely accurate.
Seller_ZvXmWDk2kH4IV
anybody from amazon team can help us???
Seller_aOyHFh2YRfkfF
that's gross sales, you should deduct shipping services and other transactions like amazon fees
Seller_zinnr9HADdMb2
For years we simply take the 1099k amount and subtract it from the bank deposits for the year and the difference we report as "Amazon fees". Not the best but it works and its 5 minutes vs 20 hours trying to decipherer the Amazon reports and even those will not line up with your 1099k.
Seller_cvtGSiSp8LY0j
i feel like it has always been like that even compared to what i track on my own kind of weird how it works
Seller_1F3cC3JUIOojA
1099-K is the total of all credit card charges. . There is no discrepancy. Just keep your books accurately and hand it off to you cpa.
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?
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?
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
39 replies
Seller_nRFmxiQg4EGrw
The 1099K includes any sales tax that was collected and remitted by Amazon; that amount is listed on page 2 of the form, and should be deducted out when filling out Schedule C. Your payment summary report will not show those taxes.
AFAIK, Amazon is the only marketplace that does this; it doesn't seem proper, but it's there (at least, it has been in the past; I've not started working on 2024, so haven't looked at the current one).
Seller_rRYxDjEstC2nV
Have similar problem. On page two is provides instructions on how get the transaction level details that makeup the numbers on the 1099K and from the same page you can get a summary of that same data. However, the sums from these three sources are significantly different from the 1099K and somewhat each other for the same timeframe.
I’ve tried to narrow in on just the Product Sales data point (page 2 of the 1099K), hoping that if I can get the date range on the other reports get matching (or close) Product Sales figures then I would be able to calculate the rest. But not luck my Product Sales are about $5,400 lower than what the 1099 shows. (i'm a small seller)
If just the product sales number is not accurate, I can't begin to calculate the following data points.
Please help.
Seller_hGsu16iOBbLk0
For us, the issue is because the Repository Report does not include Amazon Deferred Transactions. For some sellers Amazon is not allocating sales revenue until up to 7 days after the product delivery date.
You can find discrepancies if you compare your shipped units on your Inventory Ledger versus the units ordered on the Repository Report.
Seller_ZvXmWDk2kH4IV
so how to reconcile now report with 1099-k? I also have the same issue. A difference in figures from 1099-k and summary report
Seller_xo4Akj7FBBnfC
Businesses have some flexibility to determine their closing date rules for income and expense transactions, provided those criteria make sense and are consistent from year to year. Our rule is, "we report to the IRS what Amazon reports to us."
We use the monthly Sales Summary reports to record Amazon income and expenses in QuickBooks every month, so at the end of the year our reported income always matches the annual Summary Report.
Even though this might result in reported income that has differed from the 1099-K by about $50 for every $100,000 in income, our tax forms always exactly match the annual Summary Report - so they should be much easier to defend in the event of an audit.
It doesn't seem efficient to adjust your books for every deferred transaction, since any transaction not appearing in one period will appear in the next, and the IRS gets paid either way.
We also don't make those ad-hoc 'deferred transaction' adjustments to our books because this would be error-prone – and much more difficult to document in the event of an IRS audit.
Seller_xo4Akj7FBBnfC
We use the monthly Summary Report in the Seller Central 'Reports Repository' to record Amazon income and expenses in QuickBooks every month, so our QuickBooks P&L shows sales and expenses that look like the image below... plus other income and expenses that Amazon doesn't know about like sales from other channels, cost of goods sold, salaries, utilities, etc.
We sell on Amazon only by FBA, so our P&L doesn't have a 'Product sales (non-FBA)' entry under the Sales category.
As you can see, there are negative entries ('-') under both Sales and Expense - which is counterintuitive but required according to the instructions on the back of your 1099-K.
At the end of the year, our Amazon income in QuickBooks always exactly matches the full-year Summary Report, and we report that income to the IRS even though the total always seems to differ from the 1099-K by around $0.50 for every $1,000 in income.
Others have stated that the difference between the full-year Summary Report and the 1099-K is because Amazon uses inconsistent transaction cutoff times for the two reports.
We report to the IRS the income from the Summary Report - not the 1099-K - because in the event of an audit we can easily document that Amazon's reports exactly match our reported income.
Seller_vrZMtvicCEh0U
Where in Amazon do you find these expenses in a clear easy to rear format?
I have yet to find that in the reports section. Perhaps I have not looked properly.
Seller_xo4Akj7FBBnfC
In Seller Central, the Date Range Summary Report for the previous month or year can be downloaded on the Payments page, by clicking the 'Reports Repository' tab.
Under Report Type click 'Summary', choose the required date range, and click the 'Request Report' button.
Summary reports are in PDF format.
Seller_8MkHjbVu19jQh
This is the exact info I was given by my accountant. The 1099k is an informative document Amazon has to file with the IRS for their accounting. To accurately calculate income, my accountant suggested keeping records of my income. We spent a lot of time trying to make sense of the figures on the 1099k and though we could get close, it was never completely accurate.
Seller_ZvXmWDk2kH4IV
anybody from amazon team can help us???
Seller_aOyHFh2YRfkfF
that's gross sales, you should deduct shipping services and other transactions like amazon fees
Seller_zinnr9HADdMb2
For years we simply take the 1099k amount and subtract it from the bank deposits for the year and the difference we report as "Amazon fees". Not the best but it works and its 5 minutes vs 20 hours trying to decipherer the Amazon reports and even those will not line up with your 1099k.
Seller_cvtGSiSp8LY0j
i feel like it has always been like that even compared to what i track on my own kind of weird how it works
Seller_1F3cC3JUIOojA
1099-K is the total of all credit card charges. . There is no discrepancy. Just keep your books accurately and hand it off to you cpa.
Seller_nRFmxiQg4EGrw
The 1099K includes any sales tax that was collected and remitted by Amazon; that amount is listed on page 2 of the form, and should be deducted out when filling out Schedule C. Your payment summary report will not show those taxes.
AFAIK, Amazon is the only marketplace that does this; it doesn't seem proper, but it's there (at least, it has been in the past; I've not started working on 2024, so haven't looked at the current one).
Seller_nRFmxiQg4EGrw
The 1099K includes any sales tax that was collected and remitted by Amazon; that amount is listed on page 2 of the form, and should be deducted out when filling out Schedule C. Your payment summary report will not show those taxes.
AFAIK, Amazon is the only marketplace that does this; it doesn't seem proper, but it's there (at least, it has been in the past; I've not started working on 2024, so haven't looked at the current one).
Seller_rRYxDjEstC2nV
Have similar problem. On page two is provides instructions on how get the transaction level details that makeup the numbers on the 1099K and from the same page you can get a summary of that same data. However, the sums from these three sources are significantly different from the 1099K and somewhat each other for the same timeframe.
I’ve tried to narrow in on just the Product Sales data point (page 2 of the 1099K), hoping that if I can get the date range on the other reports get matching (or close) Product Sales figures then I would be able to calculate the rest. But not luck my Product Sales are about $5,400 lower than what the 1099 shows. (i'm a small seller)
If just the product sales number is not accurate, I can't begin to calculate the following data points.
Please help.
Seller_rRYxDjEstC2nV
Have similar problem. On page two is provides instructions on how get the transaction level details that makeup the numbers on the 1099K and from the same page you can get a summary of that same data. However, the sums from these three sources are significantly different from the 1099K and somewhat each other for the same timeframe.
I’ve tried to narrow in on just the Product Sales data point (page 2 of the 1099K), hoping that if I can get the date range on the other reports get matching (or close) Product Sales figures then I would be able to calculate the rest. But not luck my Product Sales are about $5,400 lower than what the 1099 shows. (i'm a small seller)
If just the product sales number is not accurate, I can't begin to calculate the following data points.
Please help.
Seller_hGsu16iOBbLk0
For us, the issue is because the Repository Report does not include Amazon Deferred Transactions. For some sellers Amazon is not allocating sales revenue until up to 7 days after the product delivery date.
You can find discrepancies if you compare your shipped units on your Inventory Ledger versus the units ordered on the Repository Report.
Seller_hGsu16iOBbLk0
For us, the issue is because the Repository Report does not include Amazon Deferred Transactions. For some sellers Amazon is not allocating sales revenue until up to 7 days after the product delivery date.
You can find discrepancies if you compare your shipped units on your Inventory Ledger versus the units ordered on the Repository Report.
Seller_ZvXmWDk2kH4IV
so how to reconcile now report with 1099-k? I also have the same issue. A difference in figures from 1099-k and summary report
Seller_ZvXmWDk2kH4IV
so how to reconcile now report with 1099-k? I also have the same issue. A difference in figures from 1099-k and summary report
Seller_xo4Akj7FBBnfC
Businesses have some flexibility to determine their closing date rules for income and expense transactions, provided those criteria make sense and are consistent from year to year. Our rule is, "we report to the IRS what Amazon reports to us."
We use the monthly Sales Summary reports to record Amazon income and expenses in QuickBooks every month, so at the end of the year our reported income always matches the annual Summary Report.
Even though this might result in reported income that has differed from the 1099-K by about $50 for every $100,000 in income, our tax forms always exactly match the annual Summary Report - so they should be much easier to defend in the event of an audit.
It doesn't seem efficient to adjust your books for every deferred transaction, since any transaction not appearing in one period will appear in the next, and the IRS gets paid either way.
We also don't make those ad-hoc 'deferred transaction' adjustments to our books because this would be error-prone – and much more difficult to document in the event of an IRS audit.
Seller_xo4Akj7FBBnfC
Businesses have some flexibility to determine their closing date rules for income and expense transactions, provided those criteria make sense and are consistent from year to year. Our rule is, "we report to the IRS what Amazon reports to us."
We use the monthly Sales Summary reports to record Amazon income and expenses in QuickBooks every month, so at the end of the year our reported income always matches the annual Summary Report.
Even though this might result in reported income that has differed from the 1099-K by about $50 for every $100,000 in income, our tax forms always exactly match the annual Summary Report - so they should be much easier to defend in the event of an audit.
It doesn't seem efficient to adjust your books for every deferred transaction, since any transaction not appearing in one period will appear in the next, and the IRS gets paid either way.
We also don't make those ad-hoc 'deferred transaction' adjustments to our books because this would be error-prone – and much more difficult to document in the event of an IRS audit.
Seller_xo4Akj7FBBnfC
We use the monthly Summary Report in the Seller Central 'Reports Repository' to record Amazon income and expenses in QuickBooks every month, so our QuickBooks P&L shows sales and expenses that look like the image below... plus other income and expenses that Amazon doesn't know about like sales from other channels, cost of goods sold, salaries, utilities, etc.
We sell on Amazon only by FBA, so our P&L doesn't have a 'Product sales (non-FBA)' entry under the Sales category.
As you can see, there are negative entries ('-') under both Sales and Expense - which is counterintuitive but required according to the instructions on the back of your 1099-K.
At the end of the year, our Amazon income in QuickBooks always exactly matches the full-year Summary Report, and we report that income to the IRS even though the total always seems to differ from the 1099-K by around $0.50 for every $1,000 in income.
Others have stated that the difference between the full-year Summary Report and the 1099-K is because Amazon uses inconsistent transaction cutoff times for the two reports.
We report to the IRS the income from the Summary Report - not the 1099-K - because in the event of an audit we can easily document that Amazon's reports exactly match our reported income.
Seller_xo4Akj7FBBnfC
We use the monthly Summary Report in the Seller Central 'Reports Repository' to record Amazon income and expenses in QuickBooks every month, so our QuickBooks P&L shows sales and expenses that look like the image below... plus other income and expenses that Amazon doesn't know about like sales from other channels, cost of goods sold, salaries, utilities, etc.
We sell on Amazon only by FBA, so our P&L doesn't have a 'Product sales (non-FBA)' entry under the Sales category.
As you can see, there are negative entries ('-') under both Sales and Expense - which is counterintuitive but required according to the instructions on the back of your 1099-K.
At the end of the year, our Amazon income in QuickBooks always exactly matches the full-year Summary Report, and we report that income to the IRS even though the total always seems to differ from the 1099-K by around $0.50 for every $1,000 in income.
Others have stated that the difference between the full-year Summary Report and the 1099-K is because Amazon uses inconsistent transaction cutoff times for the two reports.
We report to the IRS the income from the Summary Report - not the 1099-K - because in the event of an audit we can easily document that Amazon's reports exactly match our reported income.
Seller_vrZMtvicCEh0U
Where in Amazon do you find these expenses in a clear easy to rear format?
I have yet to find that in the reports section. Perhaps I have not looked properly.
Seller_vrZMtvicCEh0U
Where in Amazon do you find these expenses in a clear easy to rear format?
I have yet to find that in the reports section. Perhaps I have not looked properly.
Seller_xo4Akj7FBBnfC
In Seller Central, the Date Range Summary Report for the previous month or year can be downloaded on the Payments page, by clicking the 'Reports Repository' tab.
Under Report Type click 'Summary', choose the required date range, and click the 'Request Report' button.
Summary reports are in PDF format.
Seller_xo4Akj7FBBnfC
In Seller Central, the Date Range Summary Report for the previous month or year can be downloaded on the Payments page, by clicking the 'Reports Repository' tab.
Under Report Type click 'Summary', choose the required date range, and click the 'Request Report' button.
Summary reports are in PDF format.
Seller_8MkHjbVu19jQh
This is the exact info I was given by my accountant. The 1099k is an informative document Amazon has to file with the IRS for their accounting. To accurately calculate income, my accountant suggested keeping records of my income. We spent a lot of time trying to make sense of the figures on the 1099k and though we could get close, it was never completely accurate.
Seller_8MkHjbVu19jQh
This is the exact info I was given by my accountant. The 1099k is an informative document Amazon has to file with the IRS for their accounting. To accurately calculate income, my accountant suggested keeping records of my income. We spent a lot of time trying to make sense of the figures on the 1099k and though we could get close, it was never completely accurate.
Seller_ZvXmWDk2kH4IV
anybody from amazon team can help us???
Seller_ZvXmWDk2kH4IV
anybody from amazon team can help us???
Seller_aOyHFh2YRfkfF
that's gross sales, you should deduct shipping services and other transactions like amazon fees
Seller_aOyHFh2YRfkfF
that's gross sales, you should deduct shipping services and other transactions like amazon fees
Seller_zinnr9HADdMb2
For years we simply take the 1099k amount and subtract it from the bank deposits for the year and the difference we report as "Amazon fees". Not the best but it works and its 5 minutes vs 20 hours trying to decipherer the Amazon reports and even those will not line up with your 1099k.
Seller_zinnr9HADdMb2
For years we simply take the 1099k amount and subtract it from the bank deposits for the year and the difference we report as "Amazon fees". Not the best but it works and its 5 minutes vs 20 hours trying to decipherer the Amazon reports and even those will not line up with your 1099k.
Seller_cvtGSiSp8LY0j
i feel like it has always been like that even compared to what i track on my own kind of weird how it works
Seller_cvtGSiSp8LY0j
i feel like it has always been like that even compared to what i track on my own kind of weird how it works
Seller_1F3cC3JUIOojA
1099-K is the total of all credit card charges. . There is no discrepancy. Just keep your books accurately and hand it off to you cpa.
Seller_1F3cC3JUIOojA
1099-K is the total of all credit card charges. . There is no discrepancy. Just keep your books accurately and hand it off to you cpa.
