Great news! The IRS announced a one-year delay of the new $600 dollar reporting threshold for form 1099-K. Learn more on the official IRS website.
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 aren’t a seller located in the US and aren’t paid in USD, you won’t be issued a 1099-K form.
If you reached more than $20,000 USD in gross sales and more than 200 transactions in 2023, or a met a threshold for your state, Etsy will have a 1099-K form available for you to use when filing for the 2023 tax year.
Several states have different reporting thresholds from the IRS to be issued a 1099-K. You’ll be issued a Form 1099-K from Etsy if you met either the federal threshold or a threshold for your state in 2023.
Receiving a 1099-K form doesn’t necessarily mean you’ll owe taxes on your Etsy sales. The 1099-K form we issue doesn’t calculate your profit or indicate any tax liabilities you may have—it simply gives the total gross sales processed by Etsy Payments in 2023.
View Etsy's 1099-K Video
We know taxes can be overwhelming. For informational purposes, we’ve prepared a Tax Season Seller Guide and a video Q&A with TurboTax CPA Lisa Greene-Lewis that we hope will help you navigate the tax season.
To be sure the information on your 1099-K is correct, check that you’ve entered a valid SSN, ITIN, or EIN, matching taxpayer name, and mailing address on your Legal and tax information page.
As much as we’d like to make taxes as easy as possible for sellers, Etsy’s not in a position to interpret tax laws and give specific tax advice. That’s better left to authorized professionals. Please reach out to a local tax professional if you need tax advice.
If you’re filing a 1099-K form for the first time and are unsure of what you’ll need, visit the IRS’s website for more information on reporting requirements.
- What is a 1099-K form?
- What important deadlines should I know for tax reporting?
- How do I download my 1099-K form?
- Why did Etsy email me about taxpayer details?
- I’m not a US-based seller. Does this apply to me?
- Will I be issued a 1099-K for my state taxes?
- What if I have more than one Etsy shop?
- How do I download my 1099-K form?
- Can I choose to have a paper 1099-K form mailed to me?
- How do I update the taxpayer information on my digital 1099-K form?
- Can I file my taxes online?
- When do I need to talk to a tax professional?
What is a 1099-K form?
A 1099-K form is used to report your gross sales to the IRS as part of filing your taxes. “Gross sales” may include but are not limited to:
- All of your sales
- Shipping
- Refunds
- Card processing fees
- Sales tax applied using the sales tax tool
- Canceled orders
Learn how the 1099-K form from Etsy is calculated.
A 1099-K form from Etsy reports the total gross sales income you received through Etsy Payments from January 1 to December 31 in a given year.
You may already be familiar with a W-2 form. If you’ve worked as an hourly or salaried employee for a business in the US, that business likely issued you a W-2 form at the beginning of a new year for you to use when filing your taxes. A 1099-K form is similar, but instead of listing wages for a consistent hourly or salary pay, it lists your sales via transactions processed by a third party payment service like Etsy.
Learn about more about the different income forms for tax filing on the IRS website.
What important deadlines should I know for tax reporting?
Use this timeline to make sure you know key dates for the 2023 tax reporting season.
-
December 31, 2023: Tax information must be updated and accurate by this date. The information on your 1099-K form will match the information provided for the 2023 tax year as provided by the 31st.
This is also the last day you can request a paper 1099-K by opting out of paperless delivery.
-
January, 2024: If you exceeded $20,000 dollars in gross sales and more than 200 transactions, your 1099-K form will be available to download by the end of the month.
-
March 13, 2024: If any of the taxpayer information on your 1099-K form is wrong, be sure to update this on your Legal and taxpayer information page before this date. Changes will not be accepted after this date, as information will be sent to the IRS and relevant state tax authorities. Your updated form will be available by March 27th.
- April 15, 2024: This is the deadline for filing your 2023 tax return.
How do I download my 1099-K form?
If you’re eligible to be issued a 1099-K form, you can download your 1099-K form in your Legal and tax information page. If an error prevents you from downloading your form, try again soon. It’s likely a brief IRS outage and you’ll be able to download shortly.
You’ll receive an email from Etsy when your 1099-K form is available for you to download, but you’ll only be sent your form by mail if you turn off paperless delivery.
To download your 1099-K form:
- On Etsy.com, sign in and go to Shop Manager.
- Go to Finances.
- Go to Legal and tax information.
- Select the correct year from the dropdown menu under Your tax year.
- Select Download 1099-K. Your e-form will download as a PDF file. Don’t leave the page until the download is complete.
It’s important that you select the correct tax year from the dropdown menu when downloading your 1099-K form. Downloading a form from the wrong year will result in incorrect information for your tax reports.
Why did Etsy email me about 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 in sales, and as you approach or exceed $500 in sales in a calendar year.
If you don’t have valid taxpayer details on file and exceed $500 in sales in a calendar year, your shop will be suspended until you add these details. Your taxpayer ID on file ensures we can give you and the IRS your 1099-K form as required by US law.
Learn how to update your taxpayer information.
I’m not a US-based seller. Does this apply to me?
If you’re not a US seller, you won’t be issued a 1099-K from Etsy. However, if the information on your Legal and tax information page identifies you as a US seller (your address on file is US or you receive payments in USD), we’re required to issue you a 1099-K form. To remove yourself or your business from this filing obligation, we’ll need a completed W-8BEN form.
To start the W-8 form request, contact Etsy support. You’ll get an email from Track1099 (no-reply@track1099.com) on behalf of Etsy with the Form W-8BEN request. To prevent the email from going to your junk or spam folder, add no-reply@track1099.com to your contacts.
Will I be issued a 1099-K for my state taxes?
You'll be issued a 1099-K from Etsy if your shop is based in one of 8 states that have a sales threshold for receiving a 1099-K and your sales meet the threshold.
|
Arkansas |
$2500 |
|
District of Columbia |
$600 |
|
Illinois |
$1,000 and 4 transactions |
|
Maryland |
$600 |
|
Massachusetts |
$600 |
|
New Jersey |
$1000 |
|
Vermont |
$600 |
|
Virginia |
$600 |
What if I have more than one Etsy shop?
If you run multiple shops, the sales across all your shops will be combined based on your SSN/EIN number. If the sales across your shops total more than either the federal threshold or a state threshold, you’ll have a single 1099-K form for your combined gross income from all your shops.
For Individuals and Sole Proprietorships
To ensure the information on your 1099-K form is correct, please review and update all of your shops’ information as needed. The same combined 1099-K form will be available for download in all your shops.
Etsy requires using the same taxpayer information (Name, Address, and SSN/EIN) on each of your shops’ Legal and tax information pages. This will ensure the totals reported on your form are accurate and will help expedite any other form updates needed.
Can I choose to have a paper 1099-K form mailed to me?
You can choose to have a paper 1099-K form mailed to you by opting out of paperless-only delivery by December 31 of the tax year. You won’t be sent a 1099-K form in the mail unless you’ve opted out by December 31.
- On Etsy.com, sign in and go to Shop Manager.
- Go to Finances.
- Go to Legal and tax information.
- Under 1099-K Settings, select the toggle to opt out of paperless-only delivery.
How do I update the taxpayer information on my digital 1099-K form?
If you need to update your taxpayer information:
- On Etsy.com, go to Shop Manager, then Finances.
- Go to Legal and tax information.
- Choose Edit.
- Under Primary taxpayer ID, select Edit.
- Choose that you’re changing your Taxpayer ID.
- Enter your new ID and select the type of ID from the dropdown.
- Select Update.
You can view your gross Etsy Payments sales totals on the Legal and tax information page for each of your shops.
If you make changes to your taxpayer info in the Legal and Tax information section, first make sure you select the correct tax year from the dropdown menu under Your tax year. Your 1099-K may not be calculated correctly if you’re not set to the right year before saving any changes to your taxpayer info.
Can I file my taxes online?
Online services like Turbotax, H&R Block, TaxAct, and IRS Free File provide free or affordable ways to prepare and file your taxes online. With TurboTax Self-Employed, you can choose an option that offers unlimited expert advice. (Paid partnership. Terms apply.)
IRS Free File is a guided tax preparation program that provides tax help for people under a certain income level at no cost to you (you must be filing as an individual).
The IRS also has an Interactive Tax Assistant with a confidential search field you can use to find answers about your filing status, potential deductions, and other questions.
When do I need to talk to a tax professional?
Etsy support can’t help with these topics. You’ll need to consult a tax professional for:
- What you can or can't deduct from your taxes.
- 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 IRS reporting threshold and how it may impact your tax filings
- What to do if your 1099-K form is incorrect for a previous tax year
- Dividing your sales by month if you need to look at a fiscal year instead of the calendar year, as 1099-K forms go by calendar year.
Etsy Support can help you with any of the following issues:
- You need to correct taxpayer information on your form (before March 14 deadline). Learn how to update your taxpayer information.
- You’re concerned about the gross amount reported on your form. Learn how the form is calculated.
- You have a technical issue downloading the 1099-K form
- You need to download your shop data (CSV files) to reconcile the gross total.
- You don’t know where to find certain data (e.g., certain fees, refunds, etc.)
- You should be exempt from needing a 1099-K form as an eligible individual or business outside the US
Great news! The IRS announced a one-year delay of the new $600 dollar reporting threshold for form 1099-K. Learn more on the official IRS website.
Etsy is required to issue a 1099-K form to you and the IRS if your shop reaches $20,000 USD in sales and more than 200 transactions during the calendar year.
If you expect to qualify, make sure your taxpayer details are up to date by December 31, 2023. Learn how to update your taxpayer information.
Learn about receiving a 1099-K and see our Tax Season Seller Guide.
To ensure that you’re prepared for tax season, Etsy requires sellers with $500 in sales in a calendar year to have their taxpayer details on file.
You’ll need to make sure that you have a valid Social Security Number, Individual Taxpayer Identification 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.
If you don’t have valid taxpayer details on file and exceed $500 in sales in a calendar year, your shop will be suspended until you add these details. Your taxpayer ID on file ensures we can give you and the IRS your 1099-K form as required by US law.
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.
If you’re eligible to be issued a 1099-K form, you can download your 1099-K form in your Legal and tax information. It will appear here by the end of January. If an error prevents you from downloading your form, try again soon. It’s likely a brief IRS outage and you’ll be able to download shortly.
To download your 1099-K form:
- On Etsy.com, sign in and go to Shop Manager.
- Go to Finances.
- Go to 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.
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.
For Individuals and Sole Proprietorships
To ensure the information on your 1099-K form is correct, please review and update all of your shops’ information as needed. The same combined 1099-K form will be available for download in all your shops.
Your 1099-K gross sales won’t match other payment totals in your shop, like your revenue, your deposit amounts, or your net profit.
On Etsy, your gross sales adds all the money that buyers pay for orders that then goes into your Payment account. No expenses or refunds are subtracted from this amount. Amounts like your revenue, your deposits, and your net profit all subtract expenses such as Etsy fees, sales tax you collect, refunds, and shipping costs.
Download and review your payment data in your Shop Manager. This video explains how to subtract business expenses from sales. Learn more about how your form is calculated.
Your 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
- Shipping 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.
Etsy support can not help with certain topics. You’ll need to consult a tax professional for:
- What can or can’t deduct from your taxes.
- 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 IRS reporting threshold and how it may impact your tax filings
- What to do if your 1099-K form is incorrect for a previous tax year
- Dividing your sales by month if you need to look at a fiscal year instead of the calendar year, as 1099-K forms go by calendar year.
Etsy Support can help you with any of the following issues:
- You need to correct taxpayer information on your form (before March 14 deadline). Learn how to update your taxpayer information.
- You’re concerned about the gross amount reported on your form. Learn how the form is calculated.
- You have a technical issue downloading the 1099-K form
- You need to download your shop data (CSV files) to reconcile the gross total.
- You don’t know where to find certain data (e.g., certain fees, refunds, etc.)
- You should be exempt from needing a 1099-K form as an eligible individual or business outside the US