Amazon Seller 1099-K
If you’re an Amazon seller, tax season can be daunting—especially when it comes to understanding your 1099-K form. Knowing how to obtain and use this document correctly is essential for accurate tax filing and compliance with IRS regulations. Here’s what you need to know about the Amazon Seller 1099-K.
What Is a 1099-K?
The 1099-K is an IRS tax form that reports payment transactions processed through third-party networks. Unlike the 1099-NEC, which reports direct payments from companies, the 1099-K is issued when payments are processed through third-party platforms like Amazon’s payment processing system.
For Amazon sellers, this means that if your sales meet the reporting threshold, Amazon will issue a 1099-K to both you and the IRS.
Who Receives a 1099-K from Amazon?
You will receive a 1099-K from Amazon if:
- Your gross sales exceed $20,000 AND
- You have more than 200 transactions in a calendar year.
However, starting in 2024 (for tax year 2023), the IRS is lowering the reporting threshold to $600 with no transaction limit. This means that more Amazon sellers will receive a 1099-K moving forward.
How to Get Your 1099-K from Amazon
Amazon typically issues 1099 forms by January 31st each year. Here’s how you can access your 1099-K:
- Check Your Email – Amazon will send a notification if your 1099-K is available, with a link to download it.
- Log in to Amazon Seller Central – You can access your tax documents by navigating to Reports > Tax Document Library.
- Download from the Payments Dashboard – Amazon provides a breakdown of transactions and tax forms within the Payments section of Seller Central.
- Request a Copy – If you haven’t received it by early February, contact Amazon Seller Support.
How to Use Your 1099-K for Taxes
Your 1099-K reports gross sales, meaning it includes all payments received before deductions like Amazon fees, refunds, and expenses. When filing taxes:
- Report your total sales income on Schedule C (Form 1040).
- Deduct expenses such as Amazon seller fees, shipping costs, inventory purchases, advertising, and storage fees.
- Consider estimated tax payments if you owe self-employment taxes.
What If You Don’t Receive a 1099-K?
If you earned less than the threshold, you won’t receive a 1099-K, but you are still required to report your earnings. Use your Amazon sales reports, bank statements, and transaction summaries to file your taxes accurately.
Final Thoughts
As an Amazon seller, understanding how to obtain and use your 1099-K is crucial for a smooth tax filing process. Keep detailed records of your sales and expenses throughout the year to ensure accuracy. If you’re uncertain about your tax obligations, consult a tax professional for guidance.