It is against the law not to report all income to the IRS. Whether selling on Amazon is your primary source of income, or simply a hobby, all income should be reported. The Annual Sales Report within Amazon may be used to calculate gross receipts as reported on tax form 1099-K. To generate the sales report:
1. Log in to Seller Central
2. Click on Reports, Payments
3. Date Range Reports (far right tab)
4. Click “Generate a Report”
5. Report type = Summary
6. Enter Custom Date Range 01/01/2016 – 12/31/2016
7. Click Generate
8. The status will state “In Progress”. After a few minutes refresh the page (hit F5) to see if the status is updated. If so, click Download.
9. This annual sales summary is useful in calculating gross receipts:
2. Click on Reports, Payments
3. Date Range Reports (far right tab)
4. Click “Generate a Report”
5. Report type = Summary
6. Enter Custom Date Range 01/01/2016 – 12/31/2016
7. Click Generate
8. The status will state “In Progress”. After a few minutes refresh the page (hit F5) to see if the status is updated. If so, click Download.
9. This annual sales summary is useful in calculating gross receipts:
Seller fulfilled product sales + FBA product sales + Shipping credits + Gift wrap credits + Promotional rebates + Sales Tax
Only online sellers who exceed the IRS thresholds will receive an IRS Form 1099-K from Amazon. To generate a tax form 1099-K from Amazon, visit How Amazon Sellers Find Tax Form 1099-K.
