Amazon seller fees belongs on Line 10, commissions and fees.
Why line 10
The referral fee Amazon keeps on each order, usually 8 to 15 percent of the item price, is a selling commission and belongs on line 10. Amazon reports gross proceeds, so the fees must be deducted on their own line instead of netted out of sales. Fulfilment by Amazon charges are a different category: pick, pack, ship and storage are fulfilment costs, and the goods themselves are Part III cost of goods sold.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so Amazon seller fees lands on Line 10 without you sorting it.
Start for freeWhat Amazon seller fees is confused with
- Line 27a, other expenses
- A fee that varies with the sale price is line 10; FBA pick and pack, monthly storage and removal fees are fulfilment costs, itemised on line 27a.
- Part III line 36, part iii line 36, purchases less personal use
- What you paid your supplier for the units is inventory, Part III line 36, no matter how the units eventually sold.
- Line 8, advertising
- Sponsored Products and Sponsored Brands spend is advertising on line 8, even though Amazon deducts it from the same settlement.
Examples that belong on line 10
- A 15 percent referral fee on a 25 dollar kitchen item
- The 99 cent per-item fee on an Individual selling account sale
- A variable closing fee on a book or DVD
- The refund administration fee Amazon keeps when you refund a buyer
- A high-volume listing fee on a large catalogue
What does not belong here
- Advertising spend deducted from the same settlement, which is line 8
- FBA storage and fulfilment fees, which are better itemised on line 27a
- The wholesale cost of inventory, which is Part III line 36
- Marketplace sales tax Amazon collects and remits on your behalf
What to keep
Run the Seller Central date-range summary report for the tax year: it lists referral fees, FBA fees and advertising separately, which is exactly the split lines 10, 27a and 8 need.
Other expenses on line 10
| Expense | Line |
|---|---|
| a real estate commission split | Schedule C, Line 10 |
| App Store and Google Play commission | Schedule C, Line 10 |
| Etsy fees | Schedule C, Line 10 |
| pay-per-lead fees from Thumbtack, Angi or Yelp | Schedule C, Line 10 |
| PayPal fees | Schedule C, Line 10 |
| referral fees you pay | Schedule C, Line 10 |
| sales commissions you pay | Schedule C, Line 10 |
| Shopify transaction fees | Schedule C, Line 10 |
| Square fees | Schedule C, Line 10 |
| Stripe processing fees | Schedule C, Line 10 |
| Upwork and Fiverr platform fees | Schedule C, Line 10 |
Related lookups
- Where do client gifts go on Schedule C?
- Where does inventory go on Schedule C?
- Where does Google Ads spend go on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so Amazon seller fees lands on Line 10 without you sorting it.
Start for free