A tax and 1099-K guide for US Amazon Handmade sellers
An overview of 1099-K, sales tax and compliance for US Amazon Handmade sales.
When selling in the US market, the tax side is an invisible but critical part of profitability. This article is for general information; for exact obligations, always consult an accountant.
What is 1099-K?
1099-K is a form through which payment facilitators like Amazon report seller income to the US tax authority (IRS). It's issued to sellers exceeding certain thresholds and must be considered in income reporting.
Sales tax
In the US, sales tax varies by state. In most states, Amazon collects and remits sales tax as a 'marketplace facilitator'; still, it's important to know your obligations.
Company structure and EIN
Some sellers prefer to set up a company structure and a tax ID number (EIN) for US sales. The right structure provides advantages for both compliance and collection.
General compliance framework
| Topic | In brief |
|---|---|
| 1099-K | Income reporting form |
| Sales tax | Usually collected by Amazon |
| EIN | Tax ID number |
| Filing | Accountant support recommended |
Integrate it into operations
To integrate tax and compliance into your operations, you can use our Amazon Handmade Consulting service and review our US market selling guide.
Want help adapting these steps to your own operation?
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