Sellers, AVOID THIS MISTAKE When Filing Your Taxes in 2023
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- Опубликовано: 6 июл 2024
- Businesses are taxed on their profits, not revenue. But how exactly do you figure out what your profits are?
➡️ LEARN MORE ABOUT JUNGLE SCOUT: junglescout.video/sales-analy...
We’re explaining Amazon FBA taxes, including sales tax & income tax. We’re showing you how to use Amazon’s 1099-K form, as well as a year-end sales report & year-end expense report. Using these three reports when doing your Amazon FBA taxes this year will ensure you’re narrowing down your revenue to profits. This is key, so you don’t overpay! Two of these reports can be found in Seller Central, and one of them you’ll have to find elsewhere. We’re showing you how to use Jungle Scout’s Sales Analytics to locate that last report.
First, your 1099-K form will show you your gross revenue. There are some new regulations this year regarding this form, so watch this video for all the most up-to-date info.
The next Amazon taxes report is the year-end sales report. This will give you a breakdown of all your Amazon sales, Amazon expenses, sales tax, and bank transfers.
Finally, using Jungle Scout’s Sales Analytics, you can account for your cost of goods sold, operating expenses, and any other expenses associated with your Amazon account. Downloading your profit & loss statement for the year will show you your profits, which is what you’re on the hook for paying taxes.
… Remember to bookmark this video so you can always come back and jump right into any section by selecting a timestamp below ⬇️
0:00 Avoid this mistake when filing your taxes
0:35 The 3 forms you need to do your taxes
1:02 Using the 1099-K Form
2:38 What you need to know about sales tax
4:47 Using the Year-End Sales Report
5:47 Using the Year-End Expense Report
Read about Sales Tax & Nexus: junglescout.video/amazon-fba-...
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How to Use Sales Analytics: • Amazon FBA Profits | H...
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➡ LEARN MORE ABOUT JUNGLE SCOUT: junglescout.video/sales-analytics-feb-2023 ⬅
Very helpful
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Great video 😁 now if you sell in Mexico and Canada but from USA (not sending merchandise to those FC countries) do you have to report any taxes to those countries? It will be great if you decide to make a Video explaining more about taxes and implications when selling in the North America Global Selling program! THANKS
We'll make a video, yes!
Hello. We see many variations of a seller in the sales chart. The sales amount of each variation looks different. For example, the product with the red variant sells for $10,000 a day, and the product with the white variant sells for $10,200. Does this mean the seller is selling $20,200 per day?
Hey! Are you using the Jungle Scout Extension? If so, please send us an email at support@junglescout.com and we'd be happy to look into it for you!
Do we put "Amazon remitted state sales tax" as an expense ?
I believe that you need to add those as manual entries.
For expenses do you report fba selling fees and fba transaction fees for write off
These details are in the Sales Analytics
But if you got this 1099-K form, you would have to input it into your taxes. Where would you input your revenue to offset this?
You're correct! In addition to the 1099-K form, most sole proprietors will submit a "Schedule C (Form 1040)" which is where you (or your accountant) inputs all your income and expenses to let the IRS know exactly how much you made in net profit. This is why we showed the 2 other reports in this video (Year End Sales + Expense Reports) to help you find ALL the information that you (or your accountant) will input into the Schedule C form. I hope this helps answer your question! 😀
The Reports tab doesn't have a subcategory of "Payments" on my account. The first option is the Amazon Selling Coach one. Hmmm.
Do you already have transactions within your Amazon seller account?
@@junglescout Yeah. It generated a 1099-K for 2023
That's odd! You can check out this article for additional help: pay.amazon.com/help/201212310#:~:text=Sign%20in%20to%20your%20Amazon,click%20the%20All%20Statements%20tab.
How to get date range reports now. Thanks.
Great question! It's now called "Reports Repository" and the way to get there is from the Payments tab, and then you'll see the Reports Repository tab on the far right. Simply select your date range and then make sure to select "Summary" from the Report Type dropdown menu. Hope this helps you find the report you're looking for! 🙂
@@junglescout thank you for the quick response.
Anytime!@@mati7584
how in the world do you have such a low margin geez?
That's a whole video in itself! But the short story is that we had a product come back into stock in the last couple of months of the year, and we've spent a lot of money on trying to reclaim our search rankings, and this chewed up our overall profits. Our main product though, the washable pee pads was quite profitable otherwise.
@Jungle Scout . thanks for explaining. So the 1st round of inventory is super important not to run out of stock because you lose rank. Is it that detrimental?
@Jungle Scout still, it's very daunting that you went through 200,000$ just trying to rank.....
It's important in every step of your seller journey to not run out of stock:
The longer you are out of stock, the more damage you are causing to your Best Sellers Rank and organic keyword ranking. Amazon wants to promote products that are consistently available. If yours aren't, you'll be penalized, and it may be difficult for you to recover from lot.