Selling on Amazon is great — especially when it comes to sales figures. But when it comes to taxes, it can be a bit overwhelming. Here are the answers every Amazon seller should know about taxes:
Do I need an accountant to file Amazon seller taxes?
Getting a reliable accountant can be in your best interest for your cash flow. Some can even turn a tax debt into a refund.
What is a 1099-K form?
A 1099-K form is filed by Amazon (and similar businesses) to provide the IRS with annual and monthly gross sales information. This information includes sales tax and shipping charges.
Who is issued a 1099-K form on Amazon?
Amazon typically files this form for individual and professional seller accounts. All you need to do is provide Amazon with your tax information. Those with $20,000 in total sales and 200 transactions are required to file this form. However, keep in mind that Amazon may change the requirements and lower this threshold to $600.
Where can I find my 1099-K?
If you qualify, Amazon will have already emailed it to you. You can also find and download your report from Seller Central. Just go to Reports > Tax Document Library , then print your report.
What if my 1099-K is incorrect or never arrived?
If you didn’t receive your 1099-K or it’s incorrect, you can create a corrected report.
Do I need a business license to become an Amazon FBA seller?
Depending on your state, you may need a business license to sell on Amazon. However, if you’re a large business, you may want to get one. Some sellers choose to register as a Limited Liability Company (LLC).
If I get a business license, do I need to file Schedule C (form 1040)?
If you get a business license, you may need to file Schedule C or form 1040.
What expenses are tax deductible for Amazon sellers?
Some business expenses are tax deductible. These expenses include, but are not limited to, product costs, shipping fees, Amazon fees, and online advertising expenses.
