Amazon Updates Sellers on 2025 Tax Season and Form 1099-K Rules

Amazon Updates Sellers on 2025 Tax Season and Form 1099-K Rules

Seller Central announcement clarifies reporting thresholds, timelines, and key compliance steps for US and non-US sellers

By ChannelMAX Staff Writer
Dec-2025#11


Amazon has issued an important update on its Seller Central platform to help sellers prepare for the 2025 tax season. The announcement outlines key timelines, reporting thresholds, and compliance requirements related to Form 1099-K. With tax filing deadlines approaching in early 2026, the update aims to ensure sellers understand their obligations and avoid last-minute issues.

Update announced on Seller Central
The update, titled “Prepare for the 2025 tax season with tips and updates”, was shared directly on Amazon Seller Central. It provides clarity on when and how sellers will receive Form 1099-K, along with reminders about updating tax information on time.

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When sellers will receive Form 1099-K
Amazon informed sellers that Form 1099-K for the 2025 tax year will be issued in January 2026. The form will be delivered either electronically or by physical mail, based on the seller’s selected preference. By default, Amazon will postmark the form on or before January 31, 2026, and mail it to the address provided during the tax interview.

Sellers can also access the form digitally through their Seller Central account. To do so, they need to go to Reports, select the Tax Document Library, choose the relevant year, and then open Form 1099-K. Amazon has clarified that only the primary user of the account can access tax documents in the library.

1099-K reporting threshold for 2025
For the 2025 tax year, Amazon will issue Form 1099-K only to US sellers who meet both of the following conditions. The seller must have more than 20,000 dollars in unadjusted gross sales and more than 200 transactions during the year.

This is a significant point for sellers, as the previous IRS reporting threshold was 600 dollars in unadjusted gross sales with no minimum transaction requirement. Amazon noted that this change reflects updated IRS guidance and advised sellers to review official IRS resources for further clarification.

State-level tax reporting differences
Amazon also reminded sellers that some US states may follow tax reporting thresholds that differ from the federal IRS rules. Sellers are advised to check both state and federal requirements carefully. Consulting a qualified tax professional is recommended to ensure full compliance, especially for sellers operating across multiple states.

Important reminder for non-US sellers
Non-US sellers received a specific compliance reminder in the update. If a seller has been notified via email or the Account Health dashboard that their Form W-8 is expiring or has already expired, they must update their US tax identity information before December 30, 2025.

Amazon clarified that even if the tax information page shows the status as complete, sellers must still submit updated details before the deadline if they received an expiration notice. The update can be completed by visiting the tax profile section in Seller Central and submitting a new tax interview.

Additional guidance for sellers
To avoid delays or account issues, Amazon recommends that sellers review their tax information well in advance of the deadline. Keeping contact details and mailing addresses updated is also important to ensure timely delivery of tax documents. Sellers with complex business structures or cross-border operations may benefit from early consultation with a tax adviser.

Amazon also directed sellers to the Service Provider Network to find tax professionals and to the US Income Reporting and Tax Identity Collection FAQ for further guidance.

The Seller Central update serves as a timely reminder for Amazon sellers to prepare early for the 2025 tax season. By clearly outlining Form 1099-K thresholds, delivery timelines, and compliance steps for both US and non-US sellers, Amazon aims to reduce confusion and improve readiness. Sellers who review their tax profiles now and stay informed about reporting rules can avoid last-minute complications and ensure a smoother tax filing process in 2026.

Also Read: Amazon to cut key seller fees in Europe in 2026

Disclaimer:
Amazon is the registered trademark of the e-commerce brand.

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