Short version: does Amazon count the sales tax it auto-collects on my sales as income on my 1099K?
(I know I don't need to pay sales tax into the states since Amazon auto collects and pays that.)
What I'm wondering is if the amount Amazon collects is counted on the 1099-K they send to the IRS as income. If so I believe I should be deducting that as an expense.
When I look at the annual report for the year and add the totals of "income" and "amazon obligated tax withheld" together it does come quite close to what is shown on my 1099-K. So I'm leaning toward yes, I do need to deduct it. But I'm looking for some verification?