How to reconcile Amazon 1099-K with your sales and payouts

To reconcile an Amazon Form 1099-K, start with Box 1a: the calendar-year gross amount of reportable payment transactions, reported without reduction for fees, refunds or shipping (IRS: Instructions for Form 1099-K). So use your records to check the amount and work out deductible expenses (IRS: FAQs on receiving Form 1099-K). If the form is wrong, ask the filer for a corrected copy.

What your Amazon 1099-K reports

Your Form 1099-K reports gross payments (IRS: FAQs on receiving Form 1099-K). Box 1a holds the total for the calendar year. The 2026 instructions tell the filer: “Enter in box 1a the gross amount of the total reportable payment card/third party network transactions for the calendar year” (IRS: Instructions for Form 1099-K). In plain words, it is one January-to-December total, before any adjustment. The instructions add that “the dollar amount of each transaction is determined on the date of the transaction.”

The filer is the company that sends you the form. Its name and contact information appear in the upper left corner (IRS: FAQs on receiving Form 1099-K). That is who you contact if the form is incorrect.

For 2026, the federal reporting rule for third party settlement organizations (TPSOs) has two parts. The IRS says: “TPSOs are required to report when total gross payments for goods or services exceed $20,000 and there are more than 200 transactions for a payee” (IRS: Form 1099-K general FAQs). A payee is the person being paid. Both parts must be exceeded. A TPSO may still send a Form 1099-K for payments for goods or services below those amounts (IRS: Form 1099-K general FAQs). See also the article on the 2026 Form 1099-K threshold.

If you live outside the US and own a US LLC, read the foreign-address exception in the 2026 instructions. It rests on “documentation on which the PSE may rely to treat the payment as made to a foreign person according to Regulations section 1.1441-1(e)(1)(ii)” (IRS: Instructions for Form 1099-K). PSE stands for payment settlement entity. Whether your LLC meets that test depends on your facts and your documents, so check it with a qualified tax professional.

Why fees and refunds stay in Box 1a

Fees and refunds stay in Box 1a because the 2026 instructions require the gross amount to be reported “without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, shipping amounts, or any other amounts” (IRS: Instructions for Form 1099-K).

The instructions name six adjustments plus a catch-all:

Adjustment named in the instructions	Subtracted from Box 1a?	Source
Credits	No	IRS: Instructions for Form 1099-K
Cash equivalents	No	IRS: Instructions for Form 1099-K
Discount amounts	No	IRS: Instructions for Form 1099-K
Fees	No	IRS: Instructions for Form 1099-K
Refunded amounts	No	IRS: Instructions for Form 1099-K
Shipping amounts	No	IRS: Instructions for Form 1099-K
Any other amounts	No	IRS: Instructions for Form 1099-K

So if fees or refunds came out before money reached your bank, expect Box 1a and your deposits to differ. The IRS says that because “the Form 1099-K reports only gross payments,” you need to “review the forms, determine if the amount is correct, and determine any deductible expenses using your tax records” when you file (IRS: FAQs on receiving Form 1099-K).

How to reconcile Amazon 1099-K on your return

If you sold goods or services as a sole proprietor, the IRS says you “should report Form 1099-K payment information on” Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship) (IRS: What to do with Form 1099-K). Schedule C is the form that shows a sole proprietorship's profit or loss.

Three steps, each from an IRS page:

1. Enter gross receipts. The 2025 Schedule C instructions say: “Enter gross receipts from your trade or business. Be sure to check any Forms 1099 you received for business income that must be reported on this line” (IRS: Instructions for Schedule C). Check the Schedule C instructions for the year you file.
2. Check each adjustment. The IRS says to “check for expenses you can deduct from the gross amount (fees, credits, refunds, shipping, cash equivalents or discounts),” and how each item is treated depends on your records and the rules for your return (IRS: What to do with Form 1099-K).
3. Keep the proof. For records supporting a business tax return, the IRS says “you must keep your records as long as needed to prove the income or deductions on a tax return” (IRS: Recordkeeping).

If your business income goes on a business entity return instead, the next section has one IRS rule for entity returns. See also the federal tax calendar and who remits Amazon sales tax.

When your 1099-K needs a correction

When your 1099-K is wrong, ask the filer for the correction. The IRS says: “Don't contact the IRS. We can't correct your Form 1099-K” (IRS: FAQs on receiving Form 1099-K).

Three steps from the same IRS page:

1. Contact the filer. The IRS says to “contact the filer, whose name and contact information appears in the upper left corner on the form.”
2. Ask for a corrected copy if needed. The page adds: “If necessary, request a corrected Form 1099-K from the filer.”
3. Keep the corrected form and the correspondence. Once you have it, the IRS says to “keep a copy of the corrected Form 1099-K with your records, along with any correspondence you have with the filer or the PSE.”

One mismatch the IRS names directly involves business entity returns. If your name and taxpayer identification number (TIN) are on the 1099-K, but you report business income with Form 1120, 1120-S or 1065, the IRS says “you need to have Form 1099-K corrected” (IRS: What to do with Form 1099-K).

Quick answers

Why is my Amazon 1099-K higher than my deposits?

Box 1a is the calendar-year gross amount. The 2026 Form 1099-K instructions say it is reported “without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, shipping amounts, or any other amounts” (IRS: Instructions for Form 1099-K). If fees or refunds came out before money reached your bank, expect Box 1a and your deposits to differ.

Does the 1099-K amount include Amazon fees and refunds?

Box 1a is not reduced by them. The 2026 Form 1099-K instructions say the gross amount is reported without regard to adjustments for fees, refunded amounts and the other items they list (IRS: Instructions for Form 1099-K). For your return, the IRS says to “check for expenses you can deduct from the gross amount (fees, credits, refunds, shipping, cash equivalents or discounts)” (IRS: What to do with Form 1099-K). How each item is treated depends on your records and the rules for your return.

What do I do if my Amazon 1099-K is wrong?

Contact the filer named in the upper left corner of the form and, if necessary, ask for a corrected Form 1099-K (IRS: FAQs on receiving Form 1099-K). The IRS also says: “Don't contact the IRS. We can't correct your Form 1099-K.” When you receive the corrected form, keep a copy with your records, along with any correspondence with the filer or the payment settlement entity.

Where Taxller fits

Upload your Amazon settlement reports and Taxller turns them into double-entry books: sales, fees, refunds and payouts, split per payout. Our free tax calendar lists the federal deadlines for sellers and the state deadlines for 19 states, with weekend shifts applied and sources cited. Taxller never files or pays anything on your behalf: you or your accountant review and file.

Sources

• Instructions for Form 1099-K (12/2026)
• Form 1099-K FAQs: General information
• Form 1099-K FAQs: What to do if you receive a Form 1099-K
• What to do with Form 1099-K
• Instructions for Schedule C (Form 1040) (2025)
• Recordkeeping