How to Reconcile Your 2024 Amazon 1099-K
Here's a reminder that the '1a Gross amount of payment card/third party network transactions' on your Amazon 1099-K should very nearly equal the sum of the following entries from your 2024 full-year Summary Report that you can download on your Reports Repository page:
= Product sales (non-FBA)
+ FBA product sales
+ Gift wrap credits
+ Product, shipping, gift wrap taxes and regulatory fee collected
+ Promotional rebates (typically a negative number)
+ Shipping credits
In our case the 2024 Summary Report total was within a few hundred dollars (~0.05%) of the 1099-K box 1a amount; others have stated that the slight difference is because those two documents have inconsistent transaction time windows.
We choose to report as income to the IRS the total of the entries above from the 2024 Summary Report, not the 1099-K box 1a amount, because we have the monthly Date Range Transaction Reports (whose 12-month totals always match the annual Summary Report to the penny) as proof in the event of an audit.
The other entries in your Summary Report (positive and negative) are reported as expenses, so the 'Product, shipping, gift wrap taxes and regulatory fee collected' included in your reported income is exactly negated by 'Amazon Obligated Tax and Regulatory Fee Withheld' plus 'Product, shipping, gift wrap taxes and regulatory fee refunded' included in your reported expenses.
Several years ago, when we tried Remote Fulfillment by FBA, our income and expenses for sales outside the USA were NOT included in our US Dollar summary reports or our 1099-K. And since the many US Dollar payments from Amazon each had a different foreign exchange rate, we found it insanely difficult to reconcile those payments with our foreign-currency Summary Reports to report income and expenses for those transactions. However failing to do so would have made us liable for a failed IRS audit.
How to Reconcile Your 2024 Amazon 1099-K
Here's a reminder that the '1a Gross amount of payment card/third party network transactions' on your Amazon 1099-K should very nearly equal the sum of the following entries from your 2024 full-year Summary Report that you can download on your Reports Repository page:
= Product sales (non-FBA)
+ FBA product sales
+ Gift wrap credits
+ Product, shipping, gift wrap taxes and regulatory fee collected
+ Promotional rebates (typically a negative number)
+ Shipping credits
In our case the 2024 Summary Report total was within a few hundred dollars (~0.05%) of the 1099-K box 1a amount; others have stated that the slight difference is because those two documents have inconsistent transaction time windows.
We choose to report as income to the IRS the total of the entries above from the 2024 Summary Report, not the 1099-K box 1a amount, because we have the monthly Date Range Transaction Reports (whose 12-month totals always match the annual Summary Report to the penny) as proof in the event of an audit.
The other entries in your Summary Report (positive and negative) are reported as expenses, so the 'Product, shipping, gift wrap taxes and regulatory fee collected' included in your reported income is exactly negated by 'Amazon Obligated Tax and Regulatory Fee Withheld' plus 'Product, shipping, gift wrap taxes and regulatory fee refunded' included in your reported expenses.
Several years ago, when we tried Remote Fulfillment by FBA, our income and expenses for sales outside the USA were NOT included in our US Dollar summary reports or our 1099-K. And since the many US Dollar payments from Amazon each had a different foreign exchange rate, we found it insanely difficult to reconcile those payments with our foreign-currency Summary Reports to report income and expenses for those transactions. However failing to do so would have made us liable for a failed IRS audit.
8 replies
Seller_rl5W40mDRsmxM
Mine does not match and is off by over $3,000. I added all the items you have listed for the complete 2024 year report and the total is $3,000+ less than what is on my 1099. What am I missing?
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 no luck my Product Sales are about $5,400 lower than what the 1099 shows and I'm a very small seller so this sum is a bug discrepancy.
If just the product sales number is not accurate, I can't begin to calculate the following data points.
Please help.
Seller_xo4Akj7FBBnfC
Your 12-month Date Range Summary Report is a PDF that should like like the image below.
As stated on your 1099-K Information page, the total of the green entries in the image should equal the 1099-K 'box 1a' income reported to the IRS.
We always find a discrepancy of around 0.05% (that is, around $50 for each $100,000 in income) between the sum of the green entries and our 1099-K 'box 1a' amount; others have stated that this is because the two documents use inconsistent transaction time windows.
Note that 'Promotional rebates' is typically negative and decreases the reported income. If the total doesn't nearly match your 1099-K 'box 1a' amount, carefully check your calculations or consider hiring a qualified CPA.
Important: disregard the 'Income' summaries highlighted in red in this image; they do not equal the 1099-K 'box 1a' income that Amazon reports to the IRS.
Further details of the Summary Report income and expenses that you should report to the IRS are HERE.
Seller_Sram36TnVt73c
Aren't the sales taxes collected by Amazon also reported as income on our 1099-k and thus we have to deduct that as an expense as well since we never actually see the money?
Or has that changed this year?
How to Reconcile Your 2024 Amazon 1099-K
Here's a reminder that the '1a Gross amount of payment card/third party network transactions' on your Amazon 1099-K should very nearly equal the sum of the following entries from your 2024 full-year Summary Report that you can download on your Reports Repository page:
= Product sales (non-FBA)
+ FBA product sales
+ Gift wrap credits
+ Product, shipping, gift wrap taxes and regulatory fee collected
+ Promotional rebates (typically a negative number)
+ Shipping credits
In our case the 2024 Summary Report total was within a few hundred dollars (~0.05%) of the 1099-K box 1a amount; others have stated that the slight difference is because those two documents have inconsistent transaction time windows.
We choose to report as income to the IRS the total of the entries above from the 2024 Summary Report, not the 1099-K box 1a amount, because we have the monthly Date Range Transaction Reports (whose 12-month totals always match the annual Summary Report to the penny) as proof in the event of an audit.
The other entries in your Summary Report (positive and negative) are reported as expenses, so the 'Product, shipping, gift wrap taxes and regulatory fee collected' included in your reported income is exactly negated by 'Amazon Obligated Tax and Regulatory Fee Withheld' plus 'Product, shipping, gift wrap taxes and regulatory fee refunded' included in your reported expenses.
Several years ago, when we tried Remote Fulfillment by FBA, our income and expenses for sales outside the USA were NOT included in our US Dollar summary reports or our 1099-K. And since the many US Dollar payments from Amazon each had a different foreign exchange rate, we found it insanely difficult to reconcile those payments with our foreign-currency Summary Reports to report income and expenses for those transactions. However failing to do so would have made us liable for a failed IRS audit.
How to Reconcile Your 2024 Amazon 1099-K
Here's a reminder that the '1a Gross amount of payment card/third party network transactions' on your Amazon 1099-K should very nearly equal the sum of the following entries from your 2024 full-year Summary Report that you can download on your Reports Repository page:
= Product sales (non-FBA)
+ FBA product sales
+ Gift wrap credits
+ Product, shipping, gift wrap taxes and regulatory fee collected
+ Promotional rebates (typically a negative number)
+ Shipping credits
In our case the 2024 Summary Report total was within a few hundred dollars (~0.05%) of the 1099-K box 1a amount; others have stated that the slight difference is because those two documents have inconsistent transaction time windows.
We choose to report as income to the IRS the total of the entries above from the 2024 Summary Report, not the 1099-K box 1a amount, because we have the monthly Date Range Transaction Reports (whose 12-month totals always match the annual Summary Report to the penny) as proof in the event of an audit.
The other entries in your Summary Report (positive and negative) are reported as expenses, so the 'Product, shipping, gift wrap taxes and regulatory fee collected' included in your reported income is exactly negated by 'Amazon Obligated Tax and Regulatory Fee Withheld' plus 'Product, shipping, gift wrap taxes and regulatory fee refunded' included in your reported expenses.
Several years ago, when we tried Remote Fulfillment by FBA, our income and expenses for sales outside the USA were NOT included in our US Dollar summary reports or our 1099-K. And since the many US Dollar payments from Amazon each had a different foreign exchange rate, we found it insanely difficult to reconcile those payments with our foreign-currency Summary Reports to report income and expenses for those transactions. However failing to do so would have made us liable for a failed IRS audit.
How to Reconcile Your 2024 Amazon 1099-K
Here's a reminder that the '1a Gross amount of payment card/third party network transactions' on your Amazon 1099-K should very nearly equal the sum of the following entries from your 2024 full-year Summary Report that you can download on your Reports Repository page:
= Product sales (non-FBA)
+ FBA product sales
+ Gift wrap credits
+ Product, shipping, gift wrap taxes and regulatory fee collected
+ Promotional rebates (typically a negative number)
+ Shipping credits
In our case the 2024 Summary Report total was within a few hundred dollars (~0.05%) of the 1099-K box 1a amount; others have stated that the slight difference is because those two documents have inconsistent transaction time windows.
We choose to report as income to the IRS the total of the entries above from the 2024 Summary Report, not the 1099-K box 1a amount, because we have the monthly Date Range Transaction Reports (whose 12-month totals always match the annual Summary Report to the penny) as proof in the event of an audit.
The other entries in your Summary Report (positive and negative) are reported as expenses, so the 'Product, shipping, gift wrap taxes and regulatory fee collected' included in your reported income is exactly negated by 'Amazon Obligated Tax and Regulatory Fee Withheld' plus 'Product, shipping, gift wrap taxes and regulatory fee refunded' included in your reported expenses.
Several years ago, when we tried Remote Fulfillment by FBA, our income and expenses for sales outside the USA were NOT included in our US Dollar summary reports or our 1099-K. And since the many US Dollar payments from Amazon each had a different foreign exchange rate, we found it insanely difficult to reconcile those payments with our foreign-currency Summary Reports to report income and expenses for those transactions. However failing to do so would have made us liable for a failed IRS audit.
8 replies
8 replies
Seller_rl5W40mDRsmxM
Mine does not match and is off by over $3,000. I added all the items you have listed for the complete 2024 year report and the total is $3,000+ less than what is on my 1099. What am I missing?
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 no luck my Product Sales are about $5,400 lower than what the 1099 shows and I'm a very small seller so this sum is a bug discrepancy.
If just the product sales number is not accurate, I can't begin to calculate the following data points.
Please help.
Seller_xo4Akj7FBBnfC
Your 12-month Date Range Summary Report is a PDF that should like like the image below.
As stated on your 1099-K Information page, the total of the green entries in the image should equal the 1099-K 'box 1a' income reported to the IRS.
We always find a discrepancy of around 0.05% (that is, around $50 for each $100,000 in income) between the sum of the green entries and our 1099-K 'box 1a' amount; others have stated that this is because the two documents use inconsistent transaction time windows.
Note that 'Promotional rebates' is typically negative and decreases the reported income. If the total doesn't nearly match your 1099-K 'box 1a' amount, carefully check your calculations or consider hiring a qualified CPA.
Important: disregard the 'Income' summaries highlighted in red in this image; they do not equal the 1099-K 'box 1a' income that Amazon reports to the IRS.
Further details of the Summary Report income and expenses that you should report to the IRS are HERE.
Seller_Sram36TnVt73c
Aren't the sales taxes collected by Amazon also reported as income on our 1099-k and thus we have to deduct that as an expense as well since we never actually see the money?
Or has that changed this year?
Seller_rl5W40mDRsmxM
Mine does not match and is off by over $3,000. I added all the items you have listed for the complete 2024 year report and the total is $3,000+ less than what is on my 1099. What am I missing?
Seller_rl5W40mDRsmxM
Mine does not match and is off by over $3,000. I added all the items you have listed for the complete 2024 year report and the total is $3,000+ less than what is on my 1099. What am I missing?
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 no luck my Product Sales are about $5,400 lower than what the 1099 shows and I'm a very small seller so this sum is a bug discrepancy.
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 no luck my Product Sales are about $5,400 lower than what the 1099 shows and I'm a very small seller so this sum is a bug discrepancy.
If just the product sales number is not accurate, I can't begin to calculate the following data points.
Please help.
Seller_xo4Akj7FBBnfC
Your 12-month Date Range Summary Report is a PDF that should like like the image below.
As stated on your 1099-K Information page, the total of the green entries in the image should equal the 1099-K 'box 1a' income reported to the IRS.
We always find a discrepancy of around 0.05% (that is, around $50 for each $100,000 in income) between the sum of the green entries and our 1099-K 'box 1a' amount; others have stated that this is because the two documents use inconsistent transaction time windows.
Note that 'Promotional rebates' is typically negative and decreases the reported income. If the total doesn't nearly match your 1099-K 'box 1a' amount, carefully check your calculations or consider hiring a qualified CPA.
Important: disregard the 'Income' summaries highlighted in red in this image; they do not equal the 1099-K 'box 1a' income that Amazon reports to the IRS.
Further details of the Summary Report income and expenses that you should report to the IRS are HERE.
Seller_xo4Akj7FBBnfC
Your 12-month Date Range Summary Report is a PDF that should like like the image below.
As stated on your 1099-K Information page, the total of the green entries in the image should equal the 1099-K 'box 1a' income reported to the IRS.
We always find a discrepancy of around 0.05% (that is, around $50 for each $100,000 in income) between the sum of the green entries and our 1099-K 'box 1a' amount; others have stated that this is because the two documents use inconsistent transaction time windows.
Note that 'Promotional rebates' is typically negative and decreases the reported income. If the total doesn't nearly match your 1099-K 'box 1a' amount, carefully check your calculations or consider hiring a qualified CPA.
Important: disregard the 'Income' summaries highlighted in red in this image; they do not equal the 1099-K 'box 1a' income that Amazon reports to the IRS.
Further details of the Summary Report income and expenses that you should report to the IRS are HERE.
Seller_Sram36TnVt73c
Aren't the sales taxes collected by Amazon also reported as income on our 1099-k and thus we have to deduct that as an expense as well since we never actually see the money?
Or has that changed this year?
Seller_Sram36TnVt73c
Aren't the sales taxes collected by Amazon also reported as income on our 1099-k and thus we have to deduct that as an expense as well since we never actually see the money?
Or has that changed this year?
