How to handle multiple 1099-K forms from Amazon for USA and Canada sales in 2024

What about expenses related to each country? Should those be tracked separately or combined too? And does the Amazon marketplace fee structure differ between US and Canada?

Expenses should also be combined on your single Schedule C. You don't need to separate which expenses went with which country's sales - just total everything together on the appropriate expense lines. Amazon's fee structure does differ somewhat between countries, which is why good recordkeeping is important. Make sure you're converting any Canadian dollar expenses to USD using the same exchange rate methodology you used for the income. This keeps everything consistent and makes your reporting clearer if you ever get questioned.

Does it work with other platforms like eBay or just Amazon? I sell on multiple platforms and get several 1099-Ks.

How accurate is this? I've tried tax tools before that messed up my numbers and I ended up having to refile. Sounds promising but I'm curious if it's been reliable for the full tax year data?

It definitely works with all the major platforms - Amazon, eBay, Etsy, Shopify, and more. It's designed to handle multiple 1099-Ks from different sources and consolidate them properly. I've found it to be extremely accurate. The system actually uses AI to check for inconsistencies and flags any potential issues for review. What I really liked is that it showed the exact calculations it was making for currency conversion and how it was allocating different types of income, so I could verify everything was correct before using the numbers.

Wait how does that even work? The IRS actually picks up when this service calls but not when I call directly? Seems fishy.

I've heard about these "get through to the IRS" services but they always seem like scams to me. The IRS is notoriously impossible to reach - are you saying this actually works? And you're not just promoting something?

The service doesn't get special treatment from the IRS - it uses an automated system to wait in the phone queue for you. It's basically like having someone else sit on hold instead of you. When a representative is about to answer, you get a call connecting you to that IRS agent. You're still talking directly to the IRS, but without the hours of waiting on hold. I'm just a small business owner like you who was frustrated with trying to reach the IRS. I have no connection to the company - just sharing what worked for me when I needed specific guidance on my international sales reporting. I understand being skeptical, but it genuinely saved me hours of frustration.

I had no idea about Form 8949 for currency fluctuations. Could you explain a bit more? I thought I just needed to worry about Schedule C for my Amazon sales.

Form 8949 would only apply if you're holding Canadian dollars as an investment and then converting them to USD at a different time, resulting in gains or losses from the exchange rate changes. For your regular business operations, you don't need to worry about Form 8949. You'll just report your income on Schedule C using the conversion method I mentioned. The currency conversion for normal business transactions is straightforward - you convert at the time of the transaction or using the yearly average rate. The 8949 situation is different and typically doesn't apply to most small sellers who are just getting paid in foreign currency and promptly converting it to USD.

What kind of documentation did the IRS accept as proof for your conversion calculations? Were screenshots of the exchange rates from a reputable source good enough?

Yes, you should convert all foreign currencies to USD using the same consistent methodology - either transaction-by-transaction conversion or the yearly average exchange rate method. The IRS requires consistency in your approach across all currencies. For VAT collected by Amazon in Europe, you're correct that this isn't your income - it's tax collected on behalf of the European tax authorities. Amazon should be reporting the VAT separately from your actual sales proceeds. Your Schedule C should only include the net amount you actually received after VAT was deducted. Make sure to review your Amazon settlement reports carefully to distinguish between your gross sales, VAT collected, and your net proceeds that you actually received. Keep detailed records of how you're handling each currency conversion and VAT calculation, especially given what @Ryan Vasquez mentioned about audit documentation requirements.