Amazon sellers should prepare for the 2025 tax season as the Amazon seller tax report will be issued for those with over $20,000 in sales and 200 transactions, available in Seller Central by January 31.
Key tax information for December 2025 requires Amazon sellers’ immediate attention. The Amazon seller tax report submission now involves checking your account health and updating expiring forms to avoid complications.
Ensuring all tax details are accurate and up to date reduces the risk of delays in reporting and compliance issues. Taking these steps before year-end sets you up for a hassle-free start to 2026.
Amazon Sellers Face Updated Tax Reporting Requirements Ahead of Year-End
According to Amazon, sellers must prepare for critical updates affecting their Amazon seller tax report submission before the close of December 2025. Changes to Amazon tax reporting for sellers now include stricter thresholds and compliance requirements that could impact both FBA and FBM operations.
The IRS has updated the Form 1099-K reporting requirements for the 2025 tax year, now referred to as the Amazon 1099-K 2025. Sellers in the US will receive the form in January 2026 if they meet these conditions:
- More than $20,000 in unadjusted gross sales
- Over 200 transactions during the calendar year
Non-US sellers must pay attention to expiring Form W-8 notices and update their U.S. Tax Identity information before December 30, 2025. Failure to comply could delay your Amazon seller tax report and trigger account or reporting issues under Amazon seller tax requirements.
Accessing your 1099-K forms is done through the Seller Central Tax Document Library, ensuring that the primary account user is signed in. For sellers needing guidance, an Amazon agency can provide expertise on Amazon tax reporting for sellers, helping maintain compliance and avoid penalties.
Sellers should also be aware that certain states may impose different thresholds than federal requirements. Consulting the IRS or a tax professional ensures your Amazon seller tax report submission meets both state and federal obligations, keeping accounts in good standing.
IRS Restores 1099-K Thresholds, Simplifying Amazon Seller Tax Reports
Gig workers win big: Trump’s new rule is a game-changer for anyone with a side hustle by Piyush Shukla“The IRS restored the $20,000 income and 200-transaction threshold for Form 1099-K, meaning casual sellers and part-time gig workers may no longer receive the form unless they hit those numbers.”
Trump’s new rule restores the 1099-K threshold for 2025, ensuring only serious online businesses report income while casual sellers and part-time gig workers face less paperwork. Platforms like PayPal, Venmo, Cash App, and online marketplaces will now report only significant business income.
Only serious online businesses will receive a Form 1099-K, while casual sellers earning below the thresholds may not get one. However, all income remains taxable and must still be documented accurately to stay compliant with IRS rules.
This IRS update simplifies side hustle income tax reporting for millions of Americans earning extra cash online. Sellers should carefully track gross payments and transactions to ensure compliance while reducing confusion during the 2025 tax season.
New Form 1099 Rules Under OBBBA Affect Amazon Seller Tax Reports
In a Forbes article written by Kelly Phillips Erb, it was mentioned that the One Big Beautiful Bill Act also updates reporting requirements for Forms 1099-MISC and 1099-NEC, affecting nonemployee compensation and other payments. Amazon sellers who hire freelancers, pay contractors, or receive payments through apps must track all such income for accurate Amazon seller tax report submissions.
For 2026 and beyond, the reporting thresholds for 1099-MISC and 1099-NEC will increase to $2,000, and future adjustments will account for inflation. Sellers should note that all income, even amounts below thresholds, must still be documented and reported properly under Amazon tax reporting for sellers.
These changes emphasize careful recordkeeping for payment app income reporting, especially for side gigs and online business transactions. Sellers must manage multiple forms and track nonemployee compensation to stay compliant with the 2025 IRS updates.
Preparing Your Amazon Seller Tax Report for 2025
Amazon sellers should prepare their Amazon seller tax report carefully, as Form 1099-K is issued for payments received through credit cards, payment apps, and online marketplaces. Knowing how to get Amazon 1099-K form copies by January 31, 2026, is essential to ensure accurate Amazon tax filing.
Payments reported on a 1099-K include all amounts received for goods or services, though only profits are typically taxed. Sellers should track deductions like fees, refunds, shipping costs, and discounts to correctly report income on their Amazon tax reporting form and maintain documentation to correct any errors while meeting deadlines.
Multiple 1099 forms may apply, including 1099-NEC for nonemployee compensation and 1099-MISC for miscellaneous payments. Accurate payment app income reporting is essential to comply with IRS requirements and avoid potential penalties.
IRS Form 1099-K: What Business Owners Should Know by Rocky Mengle, Attorney“If the information on your 1099-K doesn’t match your records and you file your tax return incorrectly, the IRS may question the differences since they will already have a copy of the original form.”
