1099 or Reports Repository
Hey guys, most of you know that the information on both of these are not accurate to each other. I use Reports Repository to get the expense and tax. but there is a big difference in income when I compare my 1099 to Reports Repository. What should I use to file my tax and is there a better way to find out the expense like FBA fee, shipping fee, and taxes?
1099 or Reports Repository
Hey guys, most of you know that the information on both of these are not accurate to each other. I use Reports Repository to get the expense and tax. but there is a big difference in income when I compare my 1099 to Reports Repository. What should I use to file my tax and is there a better way to find out the expense like FBA fee, shipping fee, and taxes?
2 replies
Seller_EkbLZUYSpmJEy
Use the 1099 to show the income for Amazon.
Use a Yearly Date Range Summary Report for the associated expenses for Amazon plus any other expenses incurred documented in your accounting method.
If you are not sure or familiar with this, then we suggest talking with your accountant and/or tax advisor.
Seller_xo4Akj7FBBnfC
There a discussion HERE about how to reconcile your 1099-K with income and expenses listed in your full-year Date Range Summary Report found in the Seller Central Reports Repository.
If you follow these guidelines the discrepancy between your 1099-K box 1a 'Gross Amount' and the items on the Summary Report that Amazon reports as income should be less than 0.1%.
And, since we sell only in the US, we've found that the 'Transfers to bank account' line in the Summary Report always exactly matches the deposits reported by our bank that were initiated during the year. If you sell outside the US using Remote Fulfillment with FBA, you've got to also account for foreign-currency Summary Reports.
Other sellers have suggested that the small discrepancy between the 1099-K and Summary Report is because Amazon uses an inconsistent mix of cash and accrual accounting methods in the two.
Some sellers adjust their books to show an exact match with the 1099-K, but we prefer to submit to the IRS the exact amounts in the Summary Report so that we can show that report in the event of an IRS audit.
