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Returning Member
posted Jun 1, 2019 11:36:30 AM

Can I report Amazon 1099K sales returns and refunds as an expense? Where would I put them?

I report 'Goods for resale' as 'Supplies' -- I don't use inventory accounting.  Amazon's 1099K is not adjusted for fees or refunds.   I put the fees under 'Other expenses', so should refunds go there, too?  Or is there a better place?

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1 Best answer
New Member
Jun 1, 2019 11:36:32 AM

Refunds issued would go on the income entry screen using the option Rebates/Refunds Paid.   So you would go back to "add income for this work" and then select the Rebates/Refunds Paid option.  See the sample screenshot below.  On the next screen you can enter a description and an amount.  This amount, then, will be deducted from your self employed income total on your Schedule C form.

3 Replies
New Member
Jun 1, 2019 11:36:32 AM

Refunds issued would go on the income entry screen using the option Rebates/Refunds Paid.   So you would go back to "add income for this work" and then select the Rebates/Refunds Paid option.  See the sample screenshot below.  On the next screen you can enter a description and an amount.  This amount, then, will be deducted from your self employed income total on your Schedule C form.

Returning Member
Jun 1, 2019 11:36:34 AM

Quick and excellent answer -- thank you!!!

New Member
Feb 6, 2023 5:19:59 PM

Hi I am doing my Amazon Seller taxes. Do I have to use Inventory Accounting where I have to figure out my beginning and ending inventory costs? Or is there more simple way? I bought about 15K In products in 2022, Can I just put that down for supplies?