1099-K Question
So this always confused me but how come my 1099-k will show, for example, that my gross amount is $10,000 but if i do the sales dashboard through my seller account it was say $9,000 in ordered products....i always felt like they were off in the numbers but maybe I'm missing something?
1099-K Question
So this always confused me but how come my 1099-k will show, for example, that my gross amount is $10,000 but if i do the sales dashboard through my seller account it was say $9,000 in ordered products....i always felt like they were off in the numbers but maybe I'm missing something?
0 replies
Micah_Amazon
Hello @Seller_cvtGSiSp8LY0j,
Thank you for reaching out.
There has been a recent change in tax reporting rules relating to U.S. third-party settlement organizations and payment processors, including Amazon. The law reduces the thresholds from $20,000 in unadjusted gross sales and more than 200 transactions down to $600 and no transaction threshold. However, the Internal Revenue Service (IRS) has delayed the effective date of the new reporting threshold until January 1, 2023.
For calendar tax years before 2023 (2022 tax year and earlier), Amazon is only required to issue a Form 1099-K if you had:
- More than $20,000 in unadjusted gross sales, and
- More than 200 transactions
- If you did not meet both of these thresholds, you will not receive a Form 1099-K for the 2022 tax year.
I have included some help pages below for your reference:
U.S. Income Reporting & Tax Identity Collection FAQ
IRS Form 1099-K – form generation and payee information FAQ
Cheers,
Micah
Seller_nRFmxiQg4EGrw
The 1099K from Amazon includes ALL of what the customer paid, so in addition to ordered products, it will also include any taxes collected by Amazon and remitted to the states. You need to make sure that this amount is deducted if you file your taxes based on the 1099K amount.
AFAIK, no other online marketplace includes the sales tax collected, but worth checking. And I've heard that even some tax pros aren't aware of what Amazon does with this; the note explaining it is on page two, which is not always looked at.
I suspect that makes up most of the difference you are seeing.
Seller_xo4Akj7FBBnfC
There's currently another Seller Central thread on this topic.
As stated there, this year's 1099-K has an Information page that states its 'Box 1a Gross amount' is the sum of:
- Product sales (non-FBA)
- FBA product sales
- Shipping credits
- Gift wrap credits
- Promotional rebates (typically negative)
- Product, shipping, gift wrap taxes and regulatory fee collected
And while the sum of these items in our full-year Date Range Summary Report is approximately the 1099-K Box 1a amount, there never seems to be an exact match.
On the other hand, the 'debits' line in the Transfers section of the full-year Date Range Summary Report always equals the total of Amazon transfers to our bank for the year, to the penny.
No one seems to have a good answer as to why the 1099-K Box 1a amount never equals the total of those items above in the Date Range Summary Report. Some older threads suggest that "orders invoiced by Amazon but not yet paid" might possibly be the reason.
