Tax & 1099-K Questions
So I have been selling for awhile but always been a little confused about the tax stuff and here is my question:
When I get my 1099k from amazon it may say for example that I sold 50,000 but when I pull up the report in seller central it will say that I sold 46,000 with all of the numbers/fees/shipping/whatever...but why is that?
10 replies
Seller_nRFmxiQg4EGrw
The 1099K from Amazon (but AFAIK, not other online marketplaces) includes the Sale Tax collected from the customer and remitted directly to the states. The amounts are listed on Page 2 of the 1099.
Your reports do not generally show the tax collected, as that is never your money.
If you are reporting your taxes based on the 1099 info, be sure to deduct the amount of the sales taxes collected (as well, of course, as any other legal deductions).
CR_Amazon
Hello there @Seller_cvtGSiSp8LY0j
My name is CR and wanted to pop in here to see if I can provide you with some additional information. While I can provide any specific advice, I wanted to provide you with some resources to review below:
1099 Resource page that has FAQ's including information on how to analyze your 1099 for reporting purposes.
There is also this link that another seller posted that seems to have lots of helpful responses from other community members.
Hopefully these help!
CR_Amazon
Seller_4K7eqIN4GuF2E
Amazon plays a game where their report the entire gross amount they collect on your sales but do not deduct all their fees and "taxes", etc.
What I do it take the total of disbursement to me for the year, subtract that from what Amazon claims they "paid" me and deduct it as a business expense. My account even says I could send Amazon a 1099 for those total deductions .
Talk to an accountant.
Seller_wnc1pjYEF5ZqF
Amazon includes remitted sales tax in your 1099 gross receipts.
Seller_nRFmxiQg4EGrw
This is true. The game is called "Obeying the Law"; as the legal requirements for the 1099K are to report ALL gross income. It is up to the seller to deduct the fees and other expenses.
This is THE LAW. It's not a "game" that Amazon is playing.
You need a new accountant. One that understands basic tax law, at least.
Seller_EkbLZUYSpmJEy
Amazon is not playing a "game". Amazon is following the law and providing per IRS tax code the amount of gross sales on the 1099. Fees, taxes, cost of goods and other related business costs are all the responsibility of the business to report so that the business can show a net gain or net loss.
This is sloppy/lazy accounting and most likely would not pass an IRS audit.
Amazon is not making a transaction with you and therefore would not have gross sales to report on a 1099 for Amazon. We highly doubt that any accountant with any certification would have provided you with this as an action to take.
Finding and talking to a certified public accountant is what all Amazon sellers should do until they become comfortable with filing taxes as a business.
Seller_EkbLZUYSpmJEy
The 1099k shows the gross sales which includes items that are broken out on the yearly account summary report.
When working with the yearly account summary for FBM sellers ...
Income total + Product sales refunds (non-FBA) + Tax subtotals = 1099k box 1a Gross Sales amount.
Seller_nRFmxiQg4EGrw
Besides that, you do not issue 1099s to corporations. Even an accountant so incompetent as to not know this could easily find it on Google in under 30 seconds.
Seller_WGHPuK1SLML2g
i also heard the canceled orders are in there too ,
Seller_2oDPQTB5K0yMK
I've been selling on Amazon for over 20 years. There has always been a slight discrepancy between the 1099k and annual sales figures partially due to refunds, sales tax collected, etc and also, sometimes, due to timing. I haven't look at this in several years but, best I can recall, there is a timing issue as a result of the difference between "sale" dates and "payment processing" dates causing some transactions from Dec to not show being paid until the next year.
Tax & 1099-K Questions
So I have been selling for awhile but always been a little confused about the tax stuff and here is my question:
When I get my 1099k from amazon it may say for example that I sold 50,000 but when I pull up the report in seller central it will say that I sold 46,000 with all of the numbers/fees/shipping/whatever...but why is that?
Tax & 1099-K Questions
So I have been selling for awhile but always been a little confused about the tax stuff and here is my question:
When I get my 1099k from amazon it may say for example that I sold 50,000 but when I pull up the report in seller central it will say that I sold 46,000 with all of the numbers/fees/shipping/whatever...but why is that?
10 replies
10 replies
Seller_nRFmxiQg4EGrw
The 1099K from Amazon (but AFAIK, not other online marketplaces) includes the Sale Tax collected from the customer and remitted directly to the states. The amounts are listed on Page 2 of the 1099.
Your reports do not generally show the tax collected, as that is never your money.
If you are reporting your taxes based on the 1099 info, be sure to deduct the amount of the sales taxes collected (as well, of course, as any other legal deductions).
CR_Amazon
Hello there @Seller_cvtGSiSp8LY0j
My name is CR and wanted to pop in here to see if I can provide you with some additional information. While I can provide any specific advice, I wanted to provide you with some resources to review below:
1099 Resource page that has FAQ's including information on how to analyze your 1099 for reporting purposes.
There is also this link that another seller posted that seems to have lots of helpful responses from other community members.
Hopefully these help!
CR_Amazon
Seller_4K7eqIN4GuF2E
Amazon plays a game where their report the entire gross amount they collect on your sales but do not deduct all their fees and "taxes", etc.
What I do it take the total of disbursement to me for the year, subtract that from what Amazon claims they "paid" me and deduct it as a business expense. My account even says I could send Amazon a 1099 for those total deductions .
Talk to an accountant.
Seller_wnc1pjYEF5ZqF
Amazon includes remitted sales tax in your 1099 gross receipts.
Seller_nRFmxiQg4EGrw
This is true. The game is called "Obeying the Law"; as the legal requirements for the 1099K are to report ALL gross income. It is up to the seller to deduct the fees and other expenses.
This is THE LAW. It's not a "game" that Amazon is playing.
You need a new accountant. One that understands basic tax law, at least.
Seller_EkbLZUYSpmJEy
Amazon is not playing a "game". Amazon is following the law and providing per IRS tax code the amount of gross sales on the 1099. Fees, taxes, cost of goods and other related business costs are all the responsibility of the business to report so that the business can show a net gain or net loss.
This is sloppy/lazy accounting and most likely would not pass an IRS audit.
Amazon is not making a transaction with you and therefore would not have gross sales to report on a 1099 for Amazon. We highly doubt that any accountant with any certification would have provided you with this as an action to take.
Finding and talking to a certified public accountant is what all Amazon sellers should do until they become comfortable with filing taxes as a business.
Seller_EkbLZUYSpmJEy
The 1099k shows the gross sales which includes items that are broken out on the yearly account summary report.
When working with the yearly account summary for FBM sellers ...
Income total + Product sales refunds (non-FBA) + Tax subtotals = 1099k box 1a Gross Sales amount.
Seller_nRFmxiQg4EGrw
Besides that, you do not issue 1099s to corporations. Even an accountant so incompetent as to not know this could easily find it on Google in under 30 seconds.
Seller_WGHPuK1SLML2g
i also heard the canceled orders are in there too ,
Seller_2oDPQTB5K0yMK
I've been selling on Amazon for over 20 years. There has always been a slight discrepancy between the 1099k and annual sales figures partially due to refunds, sales tax collected, etc and also, sometimes, due to timing. I haven't look at this in several years but, best I can recall, there is a timing issue as a result of the difference between "sale" dates and "payment processing" dates causing some transactions from Dec to not show being paid until the next year.
Seller_nRFmxiQg4EGrw
The 1099K from Amazon (but AFAIK, not other online marketplaces) includes the Sale Tax collected from the customer and remitted directly to the states. The amounts are listed on Page 2 of the 1099.
Your reports do not generally show the tax collected, as that is never your money.
If you are reporting your taxes based on the 1099 info, be sure to deduct the amount of the sales taxes collected (as well, of course, as any other legal deductions).
Seller_nRFmxiQg4EGrw
The 1099K from Amazon (but AFAIK, not other online marketplaces) includes the Sale Tax collected from the customer and remitted directly to the states. The amounts are listed on Page 2 of the 1099.
Your reports do not generally show the tax collected, as that is never your money.
If you are reporting your taxes based on the 1099 info, be sure to deduct the amount of the sales taxes collected (as well, of course, as any other legal deductions).
CR_Amazon
Hello there @Seller_cvtGSiSp8LY0j
My name is CR and wanted to pop in here to see if I can provide you with some additional information. While I can provide any specific advice, I wanted to provide you with some resources to review below:
1099 Resource page that has FAQ's including information on how to analyze your 1099 for reporting purposes.
There is also this link that another seller posted that seems to have lots of helpful responses from other community members.
Hopefully these help!
CR_Amazon
CR_Amazon
Hello there @Seller_cvtGSiSp8LY0j
My name is CR and wanted to pop in here to see if I can provide you with some additional information. While I can provide any specific advice, I wanted to provide you with some resources to review below:
1099 Resource page that has FAQ's including information on how to analyze your 1099 for reporting purposes.
There is also this link that another seller posted that seems to have lots of helpful responses from other community members.
Hopefully these help!
CR_Amazon
Seller_4K7eqIN4GuF2E
Amazon plays a game where their report the entire gross amount they collect on your sales but do not deduct all their fees and "taxes", etc.
What I do it take the total of disbursement to me for the year, subtract that from what Amazon claims they "paid" me and deduct it as a business expense. My account even says I could send Amazon a 1099 for those total deductions .
Talk to an accountant.
Seller_4K7eqIN4GuF2E
Amazon plays a game where their report the entire gross amount they collect on your sales but do not deduct all their fees and "taxes", etc.
What I do it take the total of disbursement to me for the year, subtract that from what Amazon claims they "paid" me and deduct it as a business expense. My account even says I could send Amazon a 1099 for those total deductions .
Talk to an accountant.
Seller_wnc1pjYEF5ZqF
Amazon includes remitted sales tax in your 1099 gross receipts.
Seller_wnc1pjYEF5ZqF
Amazon includes remitted sales tax in your 1099 gross receipts.
Seller_nRFmxiQg4EGrw
This is true. The game is called "Obeying the Law"; as the legal requirements for the 1099K are to report ALL gross income. It is up to the seller to deduct the fees and other expenses.
This is THE LAW. It's not a "game" that Amazon is playing.
You need a new accountant. One that understands basic tax law, at least.
Seller_nRFmxiQg4EGrw
This is true. The game is called "Obeying the Law"; as the legal requirements for the 1099K are to report ALL gross income. It is up to the seller to deduct the fees and other expenses.
This is THE LAW. It's not a "game" that Amazon is playing.
You need a new accountant. One that understands basic tax law, at least.
Seller_EkbLZUYSpmJEy
Amazon is not playing a "game". Amazon is following the law and providing per IRS tax code the amount of gross sales on the 1099. Fees, taxes, cost of goods and other related business costs are all the responsibility of the business to report so that the business can show a net gain or net loss.
This is sloppy/lazy accounting and most likely would not pass an IRS audit.
Amazon is not making a transaction with you and therefore would not have gross sales to report on a 1099 for Amazon. We highly doubt that any accountant with any certification would have provided you with this as an action to take.
Finding and talking to a certified public accountant is what all Amazon sellers should do until they become comfortable with filing taxes as a business.
Seller_EkbLZUYSpmJEy
Amazon is not playing a "game". Amazon is following the law and providing per IRS tax code the amount of gross sales on the 1099. Fees, taxes, cost of goods and other related business costs are all the responsibility of the business to report so that the business can show a net gain or net loss.
This is sloppy/lazy accounting and most likely would not pass an IRS audit.
Amazon is not making a transaction with you and therefore would not have gross sales to report on a 1099 for Amazon. We highly doubt that any accountant with any certification would have provided you with this as an action to take.
Finding and talking to a certified public accountant is what all Amazon sellers should do until they become comfortable with filing taxes as a business.
Seller_EkbLZUYSpmJEy
The 1099k shows the gross sales which includes items that are broken out on the yearly account summary report.
When working with the yearly account summary for FBM sellers ...
Income total + Product sales refunds (non-FBA) + Tax subtotals = 1099k box 1a Gross Sales amount.
Seller_EkbLZUYSpmJEy
The 1099k shows the gross sales which includes items that are broken out on the yearly account summary report.
When working with the yearly account summary for FBM sellers ...
Income total + Product sales refunds (non-FBA) + Tax subtotals = 1099k box 1a Gross Sales amount.
Seller_nRFmxiQg4EGrw
Besides that, you do not issue 1099s to corporations. Even an accountant so incompetent as to not know this could easily find it on Google in under 30 seconds.
Seller_nRFmxiQg4EGrw
Besides that, you do not issue 1099s to corporations. Even an accountant so incompetent as to not know this could easily find it on Google in under 30 seconds.
Seller_WGHPuK1SLML2g
i also heard the canceled orders are in there too ,
Seller_WGHPuK1SLML2g
i also heard the canceled orders are in there too ,
Seller_2oDPQTB5K0yMK
I've been selling on Amazon for over 20 years. There has always been a slight discrepancy between the 1099k and annual sales figures partially due to refunds, sales tax collected, etc and also, sometimes, due to timing. I haven't look at this in several years but, best I can recall, there is a timing issue as a result of the difference between "sale" dates and "payment processing" dates causing some transactions from Dec to not show being paid until the next year.
Seller_2oDPQTB5K0yMK
I've been selling on Amazon for over 20 years. There has always been a slight discrepancy between the 1099k and annual sales figures partially due to refunds, sales tax collected, etc and also, sometimes, due to timing. I haven't look at this in several years but, best I can recall, there is a timing issue as a result of the difference between "sale" dates and "payment processing" dates causing some transactions from Dec to not show being paid until the next year.
