Guide

Form 1099-K for resellers: what it is, who gets one and what to do with it

Payment platforms report your sales to the IRS. Here is what the form shows, and what it does not.

General information only, not legal or tax advice. I am not a CPA or an attorney.

What a 1099-K is

Form 1099-K is an information return that a payment platform, such as a marketplace or payment app, sends to you and to the IRS. It reports the gross amount of payments you received for goods or services during the year. It does not show your costs or your profit.

The current federal threshold

For platforms like marketplaces and payment apps, a 1099-K is required only when payments to you are more than $20,000 and you have more than 200 transactions. Congress restored this level in 2025 and the IRS published updated FAQs. It replaced a phased-in plan that would have lowered the limit to $600.

• States can differ. Some states set lower thresholds, so you could receive a form even if you are under the federal level. I did not confirm Illinois's rule, so check with the Illinois Department of Revenue or your platform.
• Accounts are combined. eBay says it combines multiple accounts under the same tax ID when testing the thresholds.
• More than one form is possible. If a payment processor such as PayPal also handled your payments, you may get a separate form from it.
• eBay says it provides forms by January 31 for the prior year.

The part people miss

No form does not mean no tax. The threshold only decides whether the platform has to send a form. Income from selling is generally reportable whether or not you receive one. A CPA can tell you what counts as income in your situation. Selling used personal items at a loss is treated differently from running a business, so see hobby or business.

Gross is not profit

If a platform reports $30,000 of payments, that is the total customers paid, often including shipping and sales tax collected. Your costs of buying inventory, the platform's fees and other business expenses are separate. Keep records that show them. A tidy SKU system makes this much easier, because you can tie each sale to what you paid for the item.

What to do

1. Check each platform's tax or settings page for a form each January.
2. Keep sales reports, fee statements and purchase receipts all year.
3. Compare the form to your own records. If they do not match, ask the platform and a CPA.
4. Do not ignore a form. The IRS also receives a copy.
5. Ask a CPA about estimated tax payments and whether you are carrying on a business.

By platform

Each platform sets its own reporting practice within the IRS rules. The eBay, Poshmark and Depop comparison shows what each one says about 1099-Ks.

I am not a CPA or an attorney

This page is general information, not legal or tax advice. Rules, fees and forms change, so confirm with the agency or platform. For advice about your situation, talk to a CPA or an attorney.

Sources: IRS: FAQs on the 1099-K threshold; IRS: Form 1099-K FAQs; eBay: Form 1099-K; Summary of IRS FAQs (CPA Practice Advisor); Poshmark taxes (Zamp). Checked Oct 27, 2026.