Amazon Collected Sales Tax Reported as Gross Income on 1099K - Where to Report on Federal Taxes

[JohnR987]

Due to the SCOTUS ruling, many states began making Amazon charge sales taxes in 2019 - on everything sold via Amazon (also Ebay, etc). Those of us who are 3rd party sellers on Amazon saw Amazon charge our customers sales taxes, collect those individual sales taxes, pay the individual sales taxes collected to each state - and then report the sales taxes collected in our gross sales on out 1099-K. They reported the sales tax collected as an expense on our statements, but still included it in gross sales to the IRS. So...  Anyone who sold on Amazon/Ebay/etc in 2019 and going forward are showing the sales taxes collected in our Gross Transaction amount in Box 1 on our 1099-K...   Where do we report these taxes collected to lessen our Gross Sales, on our Federal Taxes,  by this amount? (In the past Sales Tax was only a State Tax Reporting Issue - Now it is Federal due to this). 

[Rick19744]

If Amazon is reporting gross sales as you indicate, then just show the sales tax on the miscellaneous expense line titled "Amazon remitted state sales tax" or something along those lines.

[JohnR987]

Hi Rick - Yes, the Amazon 1099-K sent to sellers, has a table on the back that shows Product Sales, Shipping Credits, and Sales Tax Collected, among a few other items - and shows that by month with an annual total. That annual total labelled "Unadjusted Gross Sales" is the same as the figure in box 1a "Gross amount of payment card/third party network transactions." The gross sales number reported to the IRS included the taxes they collected and submitted on our behalf.