Tax time is upon us again.
As the old saying goes, “Nothing is certain but death and taxes,” and while filing your tax return might not be on your bucket list, Tax Day 2025 is right around the corner. With spring also fast approaching, it’s easy to understand why you’d rather do almost anything else than sift through receipts. However, paying your taxes on time can spare you from a world of trouble including late fees, interest charges, and other potential penalties.
In this article, we’ll discuss some of the basics to help you navigate Tax Day 2025 more confidently, so you can file without the stress and get back to enjoying warmer days ahead.
Tax Day 2025
In 2025, Tax Day is Tuesday, April 15.
In the United States, Tax Day is the final date by which individual taxpayers must submit their federal income tax returns. These dates can change if April 15 falls on a weekend or holiday, but in 2025, that isn’t the case.
If you do not file and pay your taxes on time, you risk penalties of 5% to 25% of the taxes owed each month they’re late, plus accumulating interest. Sellers who fail to file they can be subject to wage garnishment, loss of certain privileges, or even prosecution.
If you need extra time to gather documents or consult an expert, you can request a filing extension by submitting Form 4868. This grants you an additional six months (typically until mid-October) to file. However, an extension to file does not grant an extension to pay. Any taxes owed still need to be paid by April 15, 2025, to avoid late payment penalties and interest charges.
Don’t forget to check your state’s tax regulations, as state filing deadlines may vary. While many states mirror the federal deadline, some do not, so be sure to confirm when your return is due.
As an Amazon seller, what taxed do I need to file?
If you’re selling on Amazon, navigating taxes involves more than just income tax. In most cases, you’ll need to file a Form 1099-K if your gross sales exceed certain thresholds and might also need to handle state and local taxes (like sales tax). On the federal side, the 1099-K is one of the most critical documents you’ll receive. This form details your annual gross sales from third-party payment networks (including Amazon).
Recent Changes to 1099-K Requirements
- 2024 tax year: Amazon issues a 1099-K if you had over 200 transactions and at least $5,000 in gross sales.
- 2025 tax year: that threshold drops to $2,500 in gross sales.
These new, lower thresholds mean many sellers who didn’t previously receive a 1099-K might now get one, so keep that in mind this tax season. Mistakes do happen, so it’s important to verify that everything on your 1099-K is accurate.
Even if you don’t meet these thresholds, you still need to report all business income, so you’re not off the hook for taxes if you don’t receive a 1099-K. As always, consulting with a qualified tax professional can help ensure you don’t miss any crucial details or potential deductions.
Do I need an accountant for tax day 2025?
The fee for an accountant or tax expert can be a dissuading point that encourages you to file your own taxes. However, the fee oftentimes pays for itself and saves you the time and stress of filing taxes near the deadline.
There may be options to claim items you might not be aware of on your own. By delegating your taxes to an expert, you can trust that you won’t leave money on the table or make costly mistakes if audited.
We’ve partnered with 1-800Accountant so Amazon sellers can sign up for a free tax-saving consultation with experts who understand and can help with Amazon seller taxes.
Final Thoughts on Tax Day 2025
Overall, filing taxes and paying money isn’t anyone’s idea of fun. But they help pay for the many programs that exist in our society.
Best of luck filing your taxes! Luckily after this, you won’t have to worry about it for nearly another year.
Additional resources:
- Podcast: Tax hacks for Amazon sellers: a roadmap to financial success
- Partnership: Accounting Services for Amazon Sellers
