1099k doesn't match.
I have 1099k that says we made 1,000 more then we actually did. I took into account the adding the:
- Product sales (non-FBA)
- FBA product sales
- Shipping credits
- Gift wrap credits
- Promotional rebate refunds (Note: This will be a subtraction)
- Sales, shipping, and gift wrap tax collected
and it still doesn't add up. I download the reports repository 1/1/2024-12/31/2024 and total was $6,152.28 and 1099k says $7,206.30(we started business in November 2024). I for the life of me can't figure out the discrepancy. I also am having a hard time figuring out total expenses I can deduct from amazon fees as they are probably off like the 1099k is. I submitted 1099k to cpa and summary report. Can anyone help or relate to this issue?
7 replies
Seller_iobipI6xASRkh
From my understanding you can deduct all expenses since the amount you actually receive is not the same as the amount collected by AMZ for sales. If they are giving you the total from sales, that is anything collected by AMZ and not showing the actual amount you received, leaving you to deduct those expenses down to match your actual payout.
Your CPA would know best on how to handle Amazon if they have experience with the platform. Their reporting system is very wonky and we have a dedicated CPA for AMZ and he has a headache dealing with it LOL.
If someone else does their own accounting, they might have better insight. Such as this forum post: https://sellercentral.amazon.com/seller-forums/discussions/t/1d3f2d8e-b732-4c46-9331-c84ff7fe0193
Seller_i6S8knzW6zU6Z
Hi @Seller_akN8ye2cZeRFV,
I see you're trying to reconcile a $1,054.02 difference between your Date Range Report ($6,152.28) and 1099-K ($7,206.30) for 2024. This kind of discrepancy is actually quite common, and I think I can help explain why.
The key information can be found in the "Understanding transactional details FAQ" section at this help page. It explains that "Amazon is required to report based on the date of the shipment, while the Date Range reports in your Seller Central account are based on the date of the order." This timing difference between order dates and shipment dates could explain part of the variance.
If you'd like to double-check your numbers, that same help page outlines the exact components that should be included when calculating your gross sales:
- Product Sales
- Product Sales Tax
- Shipping Credits
- Shipping Credits Tax
- Gift Wrap
- Gift Wrap Tax
- Promotional Rebates
- Promotional Rebates Tax
Here's something else you might want to know: According to the Form 1099-K FAQ page, even when you fully refund an order, the original sale amount still counts toward your 1099-K total.
Hope this helps explain the numbers you're seeing!
Best regards, Michael
Seller_guhB8uyqOduxs
I had to hire out a book keeper and an accountant this year. Amazon is just too much for my brain to figure out. I have "shipping credits" that count as my income...even though was FBA all of 2024.
Seller_6kGVXV3FOY1iY
Mine has never matched and I keep meticulous records. The more money Amazon can put on a 1099-k the less they will have to pay in tax. I run a report monthly on Amazon for sales and will go back a few months later and that number has increased. My CPA just writes the difference off as 'additional undisclosed fees' and we move on.
