2023 1099
hi
I received my 1099k. Are the expenses, refunds and other already deducted or to I need to deduct from that amount for taxes?
Anybody can help me
2023 1099
hi
I received my 1099k. Are the expenses, refunds and other already deducted or to I need to deduct from that amount for taxes?
Anybody can help me
0 replies
Seller_nRFmxiQg4EGrw
1099K shows only the gross amount spent by customers. It does not include any deductions for refunds, fees, or other expenses, nor your cost of goods; you need to deduct those yourself, in the appropriate line on your Schedule C.
Note that the 1099K DOE include sales taxes collected under Marketplace Facilitator laws; these are listed on page two, and will also need to be deducted on your Schedule C.
It's not too difficult to do this with tax software, but if you do not feel confident, you should consult a tax professional.
Seller_xo4Akj7FBBnfC
Your 1099-K definitely does not show the gross amount spent by customers.
Amazon calculates your 1099-K 'box 1a" amount based on some numbers you might not expect. HERE is a link that details how Amazon calculates this, and how to report your income and expenses to the IRS.
In addition to the expenses listed on that link, to offset your income you should also report expenses that Amazon doesn't know about - such as your cost of goods sold, employee and office costs, transportation fees not charged by Amazon, etc.
