As Amazon continues to tighten compliance across its marketplace, tax reporting has become a critical part of account health. For the 2025 tax year, sellers who cross specific thresholds will receive Form 1099-K, issued directly through Seller Central.
Understanding the Amazon seller tax report process, updated IRS rules, and required documentation helps sellers avoid delays, penalties, and operational disruptions heading into 2026.
Contents
Updated 1099-K Thresholds for Amazon Sellers
For 2025, Amazon will issue Form 1099-K to sellers who exceed:
- $20,000 in gross sales
- 200 transactions
The form reports gross payment volume, not profit. This distinction is crucial when preparing accurate tax filings.
Sellers can access their documents via the Seller Central Tax Document Library, provided the primary account holder is logged in.
Why Sellers Must Prepare Before Year-End
Expired Tax Forms Create Risk
Non-US sellers must ensure Form W-8 is valid. Expired forms can:
- Delay tax document issuance
- Trigger compliance flags
- Impact disbursements
Multiple Forms May Apply
Sellers may also encounter:
- 1099-NEC (contractors & freelancers)
- 1099-MISC (other income)
All income remains taxable — even if a form is not issued.
How Sellers Should Prepare Their Amazon Tax Reports
Best practices include:
- Reconciling gross sales vs net profit
- Tracking Amazon fees, refunds, ads, and shipping
- Maintaining records for all payment sources
- Coordinating with a tax professional early
Tools inside Seller Central combined with structured reporting reduce year-end stress significantly.
How Big Internet Ecommerce Supports Sellers
At BigInternetEcommerce.com, we help sellers:
- Audit Seller Central tax readiness
- Reconcile sales, fees, and payouts
- Prepare clean financial summaries for CPAs
- Reduce risk heading into tax season
Need help reviewing your Amazon account before tax season?
Schedule a call with Big Internet Ecommerce
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