23A. 1099K Explained for Quick Accounting скачать в хорошем качестве

23A. 1099K Explained for Quick Accounting

Understanding the 1099‑K for Amazon Sellers Since we introduced the 1099‑K in the last lesson, here’s a clearer explanation of what it actually represents. The first thing to know is that receiving a 1099‑K means you’re selling a healthy amount on Amazon — so congratulations. The challenge is that most sellers struggle to understand what the number on the form really means. Amazon provides “reconciliation” information in Seller Central under Payments → Date Range Report, but the data is difficult to match exactly. Amazon uses different dates across its reports, which makes it nearly impossible to reconcile the 1099‑K down to zero. I want you to know that upfront so you don’t waste hours trying to force it to balance perfectly. The 1099‑K amount is based on orders only, not returns. It reflects the total amount the customer paid at checkout, including sales tax, gift wrap, shipping, and promo rebates — even though FBA sellers don’t actually receive all of those amounts. If you have multiple Amazon accounts or do Merchant Fulfilled orders, everything is combined into one 1099‑K, which adds to the confusion. Most sellers simply give the 1099‑K to their tax professional. Many CPAs record the total as Sales Income, then expense the difference between your actual Merchandise Sales and the 1099‑K amount to Advertising and Promotions or another appropriate account. Always follow your CPA’s guidance. Even if you don’t receive a 1099‑K, it can still be helpful to make the same adjustments so your sales figures are as accurate as possible. The increase in income is offset by an equal expense, so it’s essentially a wash — but it keeps your records aligned with IRS expectations. If you use the Advanced Payment Worksheet with the corresponding accounts, your totals should come very close to the 1099‑K if one is issued. Your CPA can make any final adjustments. If you prefer a simpler approach and are comfortable letting credits and chargebacks wash out over time, the basic Excel worksheet works fine for monthly, quarterly, or annual adjustments.