Where to report 1099-K from Amazon

If you've received payments on Amazon as a self-employed individual or a freelancer, you may have received a 1099-K Form from Amazon at the end of the year.

If you're a sole proprietor, you'll report amounts from 1099-K together with other non-credit card sales, such as checks and cash, on Schedule C (Form 1040). You'll need to include the total amount of payments you received through Amazon on Line 1 (Gross receipts or sales). You should also include any expenses you incurred while conducting your business on Schedule C.

As a sole proprietor, you'll need to pay self-employment tax on your net earnings. You'll need to use Schedule SE (Form 1040) to calculate your self-employment tax.

Take the time to make sure the amount reported on the 1099-K is not already reported on Form 1099-NEC. You don’t want to accidentally double up on the same income reported on both Forms.

Generally, your total gross receipts reported on Schedule C should not be less than the amount reported in 1099-K.