Overview

Amazon sellers who meet certain sales thresholds will receive an IRS Form 1099-K, which reports unadjusted gross sales to the federal government. Understanding how this form is generated, what figures it includes, and how to correct errors is essential for staying compliant and filing accurate tax returns. Recent changes to federal reporting thresholds make this an especially important topic for sellers of all sizes.

Key Points / What Sellers Need to Know

• Reporting threshold has reverted — The IRS rolled back the proposed $600 reporting threshold and restored the previous standard of $20,000 in unadjusted gross sales combined with more than 200 transactions per calendar year.
• State thresholds may differ — Some states impose their own reporting thresholds that are lower than the federal requirement, so sellers should check their specific state rules.
• Unadjusted gross sales are reported — The 1099-K reflects the total amount buyers paid, including sales tax, shipping, and gift-wrap charges, without deductions for fees or refunds.
• Refunds do not reduce reported amounts — Once a sale is completed, the order total is permanently included in your unadjusted gross sales for that calendar year, even if the order is fully refunded later.
• Non-US sellers need a W-8 form — International sellers must provide a W-8 form to Amazon to be exempt from US tax reporting requirements.

How and When You Receive Your 1099-K

Amazon delivers the 1099-K by January 31 of the year following the reporting period. Sellers can choose between physical mail delivery and electronic delivery. By default, the form is mailed to the address provided during the tax interview process within Seller Central. Sellers who prefer digital delivery can opt into e-delivery by retaking the self-service tax interview and providing an electronic signature. Regardless of delivery method, sellers can always access their 1099-K directly through Seller Central by navigating to the Tax Document Library section, selecting the appropriate year, and downloading the 1099-K PDF.

What the 1099-K Includes

The reported amount on the 1099-K represents unadjusted gross sales, which is the total amount buyers paid for orders during the calendar year. This figure includes the product price, sales tax collected, shipping charges, and gift-wrap fees. It does not subtract marketplace fees, FBA costs, advertising spend, or any refunds issued. For sellers operating in non-US marketplaces such as the EU or UK, the 1099-K converts transactions to USD using a daily exchange rate applied on the date each transaction was booked. Sellers should be aware that this gross figure will likely be significantly higher than their actual net revenue or bank deposits.