Amazon FBA Tax Filing Checklist
If you’re selling with Amazon FBA, taxes can be a hassle, whether you’re selling across multiple states or through your own website concurrently. With the latest rules, mastering Amazon FBA tax filing can mean capturing thousands in previously unused deductions and exemptions. File like a pro, with the pros, with this easy, downloadable checklist from RJM Tax Exemption.
Step-by-Step Compliance Checklist
Tax Nexus Assessment and Obligations (Quarterly/Bi-Annual, based on Sales Volume)
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Use Amazon Seller Central to review your sales data from the past 12 months.
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Identify whether you've crossed nexus thresholds based on the state (typically, this is 200 transactions or $100,000 in annual sales)
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Track physical nexus via FBA inventory storage. Amazon's stock shifts could create a nexus in states like California.
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Account for multi-channel sales (i.e, your website) and international thresholds (if any)
Amazon FBA Tax Filing Checklist: Sales Tax Permit Registration (One-Time, with Occasional Reviews)
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Register in all nexus states via. SST (if applicable) or individually (for non-SST states)
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Register for filing if you have a nexus through non-Amazon sales, even in a marketplace facilitator state
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Set up monthly/quarterly/annual filing schedules based on your sales volume
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Note and track filing deadlines to avoid penalties
Enabling Tax Collection
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Enable automatic sales tax collection through Amazon Seller Central
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You can also enable automatic collection for non-facilitator states, with Amazon charging a small fee (optional)
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Correctly classify items (some items, like groceries, are tax-exempt in certain states)
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Include shipping/handling where required during classification
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Download Amazon marketplace reports regularly for bookkeeping
Amazon FBA Tax Prep: Tracking Income and Expenses
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Log all relevant Amazon data, including:
- Gross sales
- FBA fees (these are deductible)
- COGS
- Advertising costs
- Shipping costs
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Calculate net taxable income (sales minus deductions)
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Reconcile this data with your 1099-K form
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Finalize this by Q4 to prepare your estimates
Amazon FBA Tax Filing Checklist: Estimated Quarterly Tax Payments (Where Applicable)
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Estimate your federal liability
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If necessary, use the IRS withholding calculator to calculate your payments
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Make payments based on projected net profit
File Returns and Remit Taxes
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File Form 1040 with Schedule C by the deadline
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File + remit sales taxes per state schedule (this can be monthly at high volumes)
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Use Amazon reports when filing for facilitator sales
Get More Tax Resources
Whether you’re forming a business, figuring out income tax filing, or wrestling with Amazon FBA tax prep, RJM’s your one-stop tax solution. Get all-new insights into saving big with exemptions, expanding your business, and handling your multi-state nexus like a pro. Find out everything you need to know by visiting the RJM Tax Exemption blog, or contact us if you’d like direct advice about your tax situation.
We’re All About Simple
From Amazon FBA tax filing checklists to deep dives into national taxation, everything we do here at RJM is dedicated to making taxes simpler, faster, and much less expensive. Whether it’s the #1 rating or our industry-spanning expertise, there’s always another reason to choose RJM Tax Exemption for your Amazon FBA tax filing needs.
How It Works
Choose a Package
We offer a range of services suited for Amazon FBA sellers. Choose a package that suits you and add it to your cart to check out safely with our secure online process.
Onboard with Our Experts
Once you’re done, one of our specialists will reach out to start the onboarding process. We’ll get to know your business so we can deliver stellar results from the get-go.
Leave It To Us!
The rest is as easy as filling out that Amazon FBA tax filing checklist. Relax and let our experts do their best work; you’ll receive regular updates throughout.
