Taxes are commonly forgot about when building your own business and could potentially get a lot of people caught up if it isn’t done correctly.
Taxes can scare new entrepreneurs and sellers but it’s really not that hard!
To start off, for individual sellers according to Amazon’s Tax Information in Seller Reports, individual sellers are not eligible for Tax Calculation Services and do not have access to the Sales Tax Reports. If you want access you have to switch to a professional selling plan.
According to TaxJar, the 1099-K is issued to sellers by a third party processor like Amazon. One thing about this form is that it is only for those who make $20,000 in over 200 transactions on a single platform.
What does the form include? It includes your gross sales and only that. Throughout your journey it is best to keep track of your income, sales tax, expenses etc.
If you are a professional seller you are required to supply Amazon with tax information, if you are an individual seller you may not have access to the tax calculation services but you still need to fill out a form if you have over 50 transactions a year to help report your income.
Don’t forget to pin!
One crucial part of the 1099-K form is that it is due by Jan 31st. If you do not fill out the form or report your earnings to Amazon, it could result in account termination.
Now that you know what it is for and when it’s due, where can you find it?
The form is located in your Seller Central account→ Reports → Tax documents library. Again, if you don’t meet the requirements, you will receive a message that says:
Things to keep in mind
Make sure to fill out your form correctly, delays are always annoying to deal with. Make sure to double check everything including dates. Don’t get confused and put down the wrong year!
Stay on top of your taxes throughout the year, it makes it easier at the end
Pay attention to state laws about taxes, not all states have the same requirements.
Don’t forget your deductibles, as a Amazon seller you can claim them!
Meet the Author: [wbcr_php_snippet id=”18211″]