My 1099k says I made 9356$ after buying stock, all my start up costs and expenses and paying Amazon their portion I don’t have any profits… what do I do make goes right back into buying stock as I’m pretty new to this.
Since you’re reinvesting, your expenses should offset your income. File a Schedule C to report revenue and deduct costs like inventory and Amazon fees. A CPA or tax service like TurboTax or H&R Block can help.
3 Likes
Since your 1099-K shows $9,356 in gross sales but you have no actual profit after deducting expenses, you’ll need to report both your income and expenses correctly on your tax return to reflect the reality of your business. You typically file a Schedule C (Profit or Loss from Business) with your personal tax return (Form 1040), where you report your gross sales from the 1099-K and then deduct expenses such as cost of goods sold (COGS), shipping, Amazon fees, software, and any other business-related costs. If your expenses exceed your revenue, you may have a business loss, which could lower your overall taxable income. Keeping good records of all purchases, fees, and reinvestments is crucial to ensure accurate tax reporting. As for tax preparation services, CPAs specializing in e-commerce or firms like Bench, TaxJar, or Avalara can be helpful, but TurboTax Self-Employed or H&R Block’s small business services can also work if you prefer to file on your own.
3 Likes
Thank you!
You will want to create a profit and loss statement. List out all of your business expenses and any profits into a P&L. Also you will want to run a summary fulfillment report to get all of the expenses you paid through Amazon as well.
Is anyone else having trouble filing their taxes? I can refer you to an expert I found on Fiverr who helped me.