United States · Resellers · Explainer
1099-K for resellers.
What triggers a Form 1099-K for eBay, Poshmark and similar sales in 2026, what is inside the gross number, and how to reconcile it to your own books.
The IRS says a payment settlement platform reports only when payments exceed $20,000 and there are more than 200 transactions. Exactly $20,000 or exactly 200 sales does not trigger it, and states may set lower thresholds. A missing form never makes the income tax-free.
The reporting line
The IRS 1099-K FAQs say third-party settlement organizations report when total gross payments for goods or services exceed $20,000 and there are more than 200 transactions for a payee. Both tests must be exceeded. Payment card transactions have no threshold, and states may set lower thresholds, so a seller can receive a state form without a federal one. The IRS page we retrieved does not state a tax year for the threshold, so confirm the year on the IRS page before relying on it. The threshold decides whether a platform has to send a form. It does not decide whether income is taxable; the IRS says all income is taxable unless the tax law says it isn't.
| Payments | Transactions | Form required at the federal threshold? |
|---|---|---|
| $20,000.00 | 250 | No: payments must exceed $20,000 |
| $25,000 | 200 | No: transactions must exceed 200 |
| $20,000.01 | 201 | Yes, if both are exceeded |
| $8,000 | 50 | No federal form, but income is still taxable |
What the gross number contains
The IRS FAQs say the gross amount does not include adjustments for fees, credits, refunds, shipping, cash equivalents or discounts, and does not account for the original purchase price of the items. So the form can look much larger than your profit. Whether buyer-paid sales tax is inside the gross figure depends on how the platform reports; the IRS page we retrieved does not address it, so check the form against your sales report.
Reconciling the form to your books: a worked example
Assumption for illustration: 600 orders, each a $40.00 item with $8.00 buyer-paid shipping and $3.50 sales tax, and a platform that includes sales tax in its gross figure. This is not a typical seller; it shows the steps.
| Step | Amount |
|---|---|
| Gross payments on the 1099-K (600 × $51.50) | $30,900.00 |
| Less sales tax collected and remitted by the marketplace | $-2,100.00 |
| Revenue to report (items plus shipping) | $28,800.00 |
| Less platform fees | $-4,440.00 |
| Less shipping labels, supplies, items sold, mileage, other costs | $-12,190.00 |
| Net profit to Schedule C | $12,170.00 |
If your platform does not include sales tax in the gross, start from $28,800.00 and skip the second line. Either way the difference between the form and your profit is made of costs you must be able to support with records.
Why people get this wrong
- Treating the form as profit. It is gross. Tax is on profit after costs.
- Ignoring income below the threshold. No form does not mean no tax.
- Not matching multiple platforms. Each platform reports separately; add them up.
- Relying on an old $600 figure. Check the IRS page for the current threshold rather than a blog post.
To check a specific amount, use the 1099-K and 1099-NEC threshold checker. To turn the reconciled profit into a tax estimate, use the reseller tax calculator.
What this page does not cover
- State thresholds. Look up your state revenue department; they vary and can be lower.
- Corrections to a wrong form, or what to do about a form that is not yours.
- 1099-NEC and 1099-MISC forms, and payment cards processed outside a marketplace.
Sources (retrieved October 2026)
- IRS: Understanding your Form 1099-K
- IRS: Form 1099-K FAQs, general information
- IRS Publication 334, Tax Guide for Small Business
- IRS Schedule SE (Form 1040) instructions
Cite this page: TNAADO Tools, "1099-K for Resellers," tools.tnaado.ca/calculators/business/reseller-tax-calculator/1099-k-for-resellers/, checked October 19, 2026.
Frequently asked questions
What is the 1099-K threshold for resellers in 2026?
The IRS FAQs describe the federal threshold as gross payments over $20,000 and more than 200 transactions. Both must be exceeded. States may use lower thresholds, so a state form can arrive even when no federal form does. Confirm the year on the IRS page.
Is the 1099-K amount my income?
Not exactly. The IRS says the gross amount does not account for fees, refunds, shipping or the original purchase price. Your reportable income and then your net profit come from your own records, starting with the form as a check.
Does the 1099-K include sales tax?
The IRS page we retrieved does not say. Compare the form with your platform sales report to see whether tax is included and subtract it from revenue if it is, because the marketplace remits it.
What if I sold exactly $20,000?
The text says payments must exceed $20,000 and transactions must exceed 200, so exactly $20,000 or exactly 200 transactions does not meet both tests. Income is taxable regardless.
I got no 1099-K. Can I skip reporting?
No. The IRS says you must report any income whether or not you receive a form.
Not tax advice
This page is general information built from the IRS and platform sources listed above. It is not tax, legal or accounting advice and it does not know your situation. Results vary: every figure comes from the assumptions you enter or the labelled example, not from a prediction of what you will earn. Confirm anything that matters with the IRS instructions, your state revenue department or a tax professional. A Canadian version is not covered here.