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If you've received payments on Amazon as a selfemployed individual or a freelancer, you may have received a 1099K Form from Amazon at the end of the year.
If you're a sole proprietor, you'll report amounts from 1099K together with other noncredit card sales, such as checks and cash, on Schedule C (Form 1040). You'll need to include the total amount of payments you received through Amazon on Line 1 (Gross receipts or sales). You should also include any expenses you incurred while conducting your business on Schedule C.
As a sole proprietor, you'll need to pay selfemployment tax on your net earnings. You'll need to use Schedule SE (Form 1040) to calculate your selfemployment tax.
Take the time to make sure the amount reported on the 1099K is not already reported on Form 1099NEC. You don’t want to accidentally double up on the same income reported on both Forms.
Generally, your total gross receipts reported on Schedule C should not be less than the amount reported in 1099K.