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The IRS requires marketplaces to report the gross amount of each sale. You pay tax on what you keep after Walmart’s fees, your refunds and what your stock cost you.
Walmart reports your sales, and your bank records your payouts.
Walmart takes its commission before it pays you, and reports the sale at its price before that deduction.
Walmart reports the original sale and does not subtract what you refunded to the buyer.
Walmart includes the shipping your buyers paid.
Walmart reports a December sale on this year’s form, even when Walmart pays you for it in January.
Walmart marks each order in the Tax Withheld column of your reconciliation report where Walmart collected and remitted the sales tax. We check that column before we use the gross figure, and we keep the tax Walmart remitted out of your income.
Walmart has to file a 1099-K for you only when both are true for the year:
Congress restored that test in the One Big Beautiful Bill Act, for 2025 and later.
Walmart applies the test to its own payments to you. Sell 15,000 dollars on Walmart and 15,000 dollars on another marketplace, and neither marketplace has to send you a federal 1099-K, while you still report all 30,000 dollars.
Some states set a lower threshold, so Walmart can send you a form below the federal figures.
Say Walmart reports 80,000 dollars of sales on your 1099-K, and none of it is sales tax Walmart remitted. Walmart took 12,000 dollars in commission and fulfillment fees, you refunded buyers 6,000 dollars, your stock cost you 44,000 dollars, and you had no other business expenses.
Worked example, all figures in dollars
| Gross sales on your 1099-K | What Walmart reports | 80,000 |
|---|---|---|
| Less refunds to buyers | Schedule C line 2 | 6,000 |
| Less cost of goods | Schedule C line 4, from Part III | 44,000 |
| Less commission and fulfillment fees | Business expenses in Part II | 12,000 |
| Taxable profit | What you pay tax on | 18,000 |
Walmart reports 80,000. You pay tax on 18,000.
If you leave the 80,000 dollars off your return, the IRS can send you a CP2000 notice, because Walmart filed the same figure with the IRS.
If you filed a prior year from the 1099-K figure, send it to us while you can still amend it.
If you sell through an entity, see corporate tax planning. If you sell as a sole proprietor, see individual tax preparation.
We put a CPA or an Enrolled Agent on every return. We do not use seasonal staff.
We quote you a fixed fee before we start work. We do not run an hourly meter.
We answer your email within 24 hours, in filing season and outside it.
Send us your 1099-K and your reconciliation reports from Seller Center.
We reconcile the gross figure against your fees, refunds, shipping and the sales tax Walmart remitted.
We work out your cost of goods from your inventory records, in Part III of Schedule C.
We add your other marketplaces, if you sell on more than one.
We file, and we set up your records so we can reconcile next year from the start.
Pricing runs per return, not per form. These are the factors that set a quote, and you get the fixed number before the work starts.
“Each person that reaches out to us gets a custom quote and a custom proposal for their exact tax situation. So each person that approaches us has the opportunity to speak with an adviser to put together a custom plan.”
“Excellent experience. Responsive, helpful, and very professional. I thought the process went well and that they made everything clear and easy to follow.”
You can file from the 1099-K figure yourself. If you do, you pay tax on refunds you gave back and fees Walmart kept.
We explain general rules and we are not advising you on your own situation. Your answer depends on facts we cannot see until we look at your records, so speak to a CPA before you file.
Have a CPA file the return
