Amazon Shipping Cost & Prep for Taxes
2023 was my first year selling on Amazon, I received the 1099-k form and am starting to prep for taxes. Does Amazon provide a report that shows how much I paid for shipping though the Amazon system? I see the shipping credits in form 1099-k but need to find the total shipping expense for me.
Amazon Shipping Cost & Prep for Taxes
2023 was my first year selling on Amazon, I received the 1099-k form and am starting to prep for taxes. Does Amazon provide a report that shows how much I paid for shipping though the Amazon system? I see the shipping credits in form 1099-k but need to find the total shipping expense for me.
0 replies
Micah_Amazon
Greetings @Seller_5aixNOj3lH61z,
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_xo4Akj7FBBnfC
In your Seller Central Reports Repository, you can download the full-year Date Range Summary Report to find all of the fees debited by Amazon, including shipping fees.
In the full-year Date Range Summary Report, the total amount that Amazon transferred to your bank that year is the Debits amount in the Transfers section of the report.
The Information page of your 1099-K states the sum of the following items in the Date Range Summary report equal your 1099-K Box 1a "Gross Amount":
- 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
However, we always see a light difference (about one-tenth of one percent) between this total and the 1099-K Box 1a amount.
Other sellers have stated that this is because Amazon uses an inconsistent mix of cash and accrual accounting methods in the 1099-K and Date Range Summary Report
Micah_Amazon
Hello @Seller_5aixNOj3lH61z,
I wanted to follow up and see if you still need some assistance. Please advise.
Cheers,
Micah
