What Do I Need to Know About My 1099-K Tax Form?

Quick answer

US sellers, be sure your taxpayer details are up to date, especially if you expect to reach at least $500 USD in sales in 2022. Learn how to update your taxpayer information.

If you’re a US seller, the IRS form 1099-K is used to report your earnings. The 1099-K form may apply to your earnings on Etsy.

If you earn at least $600 USD in sales during a calendar year, Etsy is required by the IRS to provide you a 1099-K form with your Etsy sales and transactions the following January. If you meet this threshold, Etsy is also legally obligated to report your sales and taxpayer information to the US government.

If you don’t have a valid Social Security Number or Employer Identification Number on file with your Etsy shop, Etsy will alert you via email and in your Shop Manager as you approach the IRS sales threshold. Once your 2022 sales reach $500 USD, you must update your taxpayer details. If you don’t have valid taxpayer details on file and exceed $500 USD in sales, your shop will be suspended until you add these details.

If you aren’t a US seller and aren’t paid in USD, you won’t receive a 1099-K from Etsy.

To ensure the information on your 1099-K is correct, check that your legal and tax information is correct and that you’ve entered a valid SSN or EIN, matching taxpayer name, and mailing address.  

If you update your taxpayer address, your mailing address will automatically update in your Payment settings

Learn how to update your taxpayer information

Jump to a section:

What are the Federal IRS reporting thresholds?

Etsy is required to issue a 1099-K form to you and the IRS if your shop reaches $600 USD in sales during the calendar year.

Etsy will email you when you reach $250 USD and $500 USD in sales and don’t have a taxpayer ID (SSN or EIN) on file.

For 2022, the IRS changed the federal reporting requirement from the former 2021 requirements.

View the 2021 federal reporting requirements:

  • You had $20,000 USD in sales through Etsy Payments during the calendar year.
  • You received 200 or more transactions through Etsy Payments over that same period.

What are US state requirements?

Some states have their own 1099-K requirements. You’ll receive a 1099-K form if your total 2022 Etsy Payments sales meet the threshold for your state. 

Alabama

1500 USD

Arkansas

2500 USD

California

600 USD

District of Columbia

600 USD

Illinois

1,000 USD and 4 transactions

Maryland

600 USD

Massachusetts

$600 USD

Mississippi

600 USD

Missouri

600 USD

New Jersey

1000 USD

Vermont

600 USD

Virginia

600 USD



Will I get more than one 1099-K if I meet multiple requirements

If you meet both federal and state requirements

If you meet the federal IRS threshold of $600 USD in sales, that information will be reported to the IRS as well as the state tax authorities for the states that require it. You will still only receive one 1099-K form from Etsy if you qualify based on state and IRS requirements. 

If you have more than one shop on Etsy

If you run multiple shops, the sales across all your shops will be combined based on your SSN/EIN number to determine whether you have met the reporting thresholds. You are required to have the same taxpayer information on each of your shops. If your combined shop totals qualify, you will receive a single 1099-K with the combined gross totals from your shops. This form will be available for download in all your shops.

If the names and addresses on your Etsy shops don’t match, we’ll use the name and address from your oldest shop that has your SSN/EIN on it.

What is a 1099-K form?

Etsy, like other marketplaces, is required by US law to send out a 1099-K tax form.

A 1099-K form from Etsy reports the total gross sales income you received through Etsy Payments during the last calendar year. “Gross sales” includes all of your sales – postage, refunds, card processing fees, sales tax applied using the sales tax tool, and even canceled orders.

Don’t worry, though – you only pay taxes on your profit (gross sales minus expenses including Etsy fees and deductions). Learn more about paying taxes as a business owner.

For purposes of the 1099-K tax form, the following payments are not considered "Etsy-processed payments":

  • Payments processed through your own PayPal account
  • Cheques
  • Money orders
  • Bank transfers
  • Other alternative payment methods

While Etsy is not able to provide tax advice to our sellers, our goal is to help you understand and navigate these requirements. We want to make dealing with taxes as easy as possible.

How do I download my 1099-K form?

  1. On Etsy.com, sign in and go to Shop Manager.
  2. Go to Finances.
  3. Go to Legal and tax information.
  4. Select Download 1099-K. Your e-form will download as a PDF file. Don’t leave the page until the download is complete.

Why did Etsy email me about my taxpayer details?

If you don’t have a Social Security Number or Employer Identification Number on file with your Etsy shop, Etsy will remind you via email to enter valid taxpayer information when you reach $250 USD in sales, and as you approach or exceed $500 USD in sales in a calendar year.

If valid taxpayer details aren’t provided, when you reach $500 USD in sales, your shop will be suspended until you add these details. This is to ensure that we’re able to send you an accurate 1099-K if you reach the legally required federal reporting threshold of $600 USD.

We send an email once you reach $250 USD in sales to help give you plenty of notice before your shop is suspended.

Email alerts from Etsy will direct you to your Etsy account to update your taxpayer information on your Legal and tax information page. Learn how to update your taxpayer information.

Can I choose to have a paper 1099-K form mailed to me?

If you prefer, you can choose to have a physical 1099-K form mailed to you. You won’t receive a 1099-K form in the mail unless you opt out of paperless-only delivery.

  1. On Etsy.com, sign in and go to Shop Manager.
  2. Go to Finances.
  3. Go to Legal and tax information.
  4. Under 1099-K Settings, toggle Off to opt out of paperless-only delivery. 

How do I update the taxpayer information on my digital 1099-K form?

As of 14th March 2022, Etsy is no longer accepting changes to 2021 tax information. If you updated your 2021 taxpayer information between 13th February and 14th March, you can download an updated form after 24th March.

Learn more about updating your taxpayer information.

In the meantime, you can view your gross Etsy Payments sales totals on the Legal and tax information page for each of your shops.

When do I need to talk to a tax professional?

For questions regarding specific tax requirements, please reach out to your local tax professional, since Etsy is unable to provide tax advice. 

  • State specific thresholds and reporting requirements
  • What to do if you’re having trouble updating your taxpayer information with the IRS. 
  • How to file taxes with  your 1099-K form if it needs to be split between two different taxpayer numbers in a single calendar year 
  • Which countries you’ll have to report earnings to
  • What exactly you’ll need to report and how to report it on your tax return
  • The tax implications of changing locations and filing status (individual vs. business)
  • How to report expenses on your tax filing to ensure you only pay taxes on your net profit
  • Details about the $600 USD IRS reporting threshold for 2022 and how it may impact your tax filings
  • What to do if your 1099-K form is incorrect for a previous tax year

Are you getting an error when entering your EIN information? If you recently received your EIN from the IRS, your EIN information is not registered in the IRS database yet. For now, add your SSN and wait a few weeks to re-enter your EIN information.

Etsy will  have 1099-K forms available to download for qualifying sellers by the end of January.

The way we deliver forms to sellers is changing this year. You’ll receive your 2021 1099-K form by paperless download, and you won’t be mailed a paper form unless you choose to opt out of paperless-only delivery. You can learn more in Etsy’s Terms & Conditions on electronic communications. 

You may qualify to receive a 2021 federal 1099-K form if:

  • You had $20,000 USD in sales through Etsy Payments during the calendar year.
  • You received 200 or more payments through Etsy Payments over that same period.

You may qualify to receive a 1099-K form if you meet certain state requirements. 

On your Legal and tax information, select Download 1099-K

Your e-form will download as a PDF file. Don’t leave the page until the download is complete.

You'll only receive a downloadable file of your 1099-K form unless you opt out of paperless-only delivery. To opt out, go to 1099-K Settings on your Legal and tax information page and toggle Off. 

As of 14th March 2022, Etsy is no longer accepting changes to 2021 tax information. If you updated your 2021 taxpayer information between 13th February and 14th March, you can download an updated form after 24th March.

Learn more about updating your taxpayer information.

If you run multiple shops as the sole proprietor, the sales across all your shops will be combined to determine whether you have met the reporting thresholds. If the names and addresses on your Etsy shops don’t match, we’ll use the name and address from your oldest shop that has your SSN/EIN on it. 

If your combined shop totals qualify, you will receive a separate 1099-K for each shop.

You 1099-K total is your gross sales income. To reconcile your 1099-K form, you can download your Etsy Payments CSV file and view the “gross” column.

Your total gross sales income from Etsy Payments is reported on the 1099-K form without subtracting expenses, such as (not a complete list):

  • Fees
  • Refunds
  • Postage costs
  • Sales tax collected by you

While we are required to report gross income on your form, it remains your responsibility to determine what, from your total amount earned, to report as taxable income on your income tax return. You pay taxes only on your profit (in other words, gross sales minus expenses and deductions). 

Taxes collected by Etsy from your buyers are not reported on the 1099-K form we issue.

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