amazon's revenue isn't your profit.
amazon takes 15% referral + fba fees + ppc + storage + return processing. the gap between 'units sold × price' and what hits your bank can be 50%+. all of it is deductible.
free 2026 amazon fba tax calculator: self-employment tax, mileage deduction at 72.5¢/mile, federal & state brackets, and quarterly estimated payments for amazon fba marketplace 1099 contractors.
your amazon fba math
the form arrives. or it doesn't. you still owe.
amazon's fee stack: referral fee (~15% of sale, category-dependent), fba fulfillment fees (size/weight-based, $3–$15 typical per unit), storage fees (monthly per cubic foot, higher in q4), long-term storage fees (after 365 days), ppc ad costs (variable, $0.10–$5+ per click), and return processing fees.
amazon's 'reserved' balance and rolling reserves can make your 1099-K appear much higher than what you actually received in cash for the year. cash basis vs. accrual basis becomes critical. most fba sellers use cash basis — but you need to reconcile carefully against amazon's reports.
5 deductions specific to amazon fba
the biggest pile. amazon's annual reports break these out — download them and feed them straight to your accountant.
sponsored products, sponsored brands, sponsored display — all deductible advertising expenses.
what you paid for the units you sold. supplier invoices, shipping to amazon's warehouse, import duties — all part of cogs.
the keyword/listing/competitor tools every fba seller uses. all deductible as software/subscriptions.
if you have dedicated space (even shipping prep area), percentage of home expenses or full rent for a warehouse.
fba seller in raleigh, $250k gross sales, $130k cogs + amazon fees + ppc + storage
$250k gross. after cogs + fees + ppc, taxable income drops to $120k-ish. nc income tax 4.25%. se tax + federal + state: ~$36k owed. realistic take-home: ~$84k. fba is high-revenue, low-margin — track everything.
amazon fba, specifically
is amazon's 1099-K my actual income?+
no. it reports gross order value. your actual income is gross minus all amazon fees, refunds, and reserves not yet released. reconcile against amazon's seller central reports.
do i need an llc for fba?+
not for tax purposes — a sole prop files schedule c. but llcs offer liability protection (important if you sell products that could cause injury). talk to an attorney + cpa.
fba storage fees in q4 are huge. all deductible?+
yes. all amazon-charged fees are deductible business expenses regardless of category.
import duties — how do i deduct?+
import duties on inventory are part of cost of goods sold. add to your cogs when calculating margin per unit.
also drive, sell, host, or stream elsewhere? combine on one schedule c.
your amazon fba 1099 income gets added to every other gig you do for the year. one self-employment return covers all of it — and miles, fees, and home-office allocations may apply across platforms.