Will I Receive a 1099-K Tax Form From Etsy?

Are you having trouble downloading your 1099-K form? Some sellers are seeing an error page due to a high number of 1099-K downloads happening at the same time. If you have trouble downloading your form, please try again soon.

Quick answer

Quick answer: When your 2021 1099-K form is ready, you’ll be able to download it on your Legal and tax information page.

You may qualify to receive a 1099-K form if you meet certain sales and transactions thresholds. Depending on which state you’re located in, your requirements may vary. If you receive a 1099-K form, Etsy is required to send a copy of the same form to the IRS and/or the tax authority of your state.

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 requirements?

Etsy is required to issue a 1099-K form to you and the IRS if you meet both of these 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.

If you meet both these thresholds, Etsy will email you towards the end of the calendar year to ensure that your taxpayer information and mailing address are correct. 

The Federal IRS requirements for being issued a 1099-K form are changing for 2022 and you’ll become eligible when your shop reaches $600 USD in sales. If you expect to qualify in 2022, please update your taxpayer information as soon as possible. 

This does not affect the 2021 1099-K form you will receive in January 2022.

What are the state requirements?

Some states have their own 1099-K requirements. You’ll receive a 1099-K form if your total 2021 Etsy Payments sales meet the threshold for your state. 

Alabama

$1500

Arkansas

$2500

District of Columbia

$600

Illinois

$1,000 and 4 transactions

Maryland

$600

Massachusetts

$600

New Jersey

$1000

Vermont

$600

Virginia

$600



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

If you meet both federal and state requirements

If you meet both the $20,000 in sales and 200 payments federal IRS thresholds, that information will also 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.

You're required to have the same taxpayer information on each of 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 – shipping, 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
  • Checks
  • 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.

When will I get my 1099-K form?

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. 

  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.

If you believe you’ve met the 1099-K requirements through Etsy Payments within the calendar year but a 1099-K form isn't available to download by the end of February, select Contact us at the bottom of this page.

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.

A paper form will be mailed to you shortly after you opt out of paperless-only delivery. We recommend that you opt out of paperless-only delivery by December 31, 2021 to ensure that you receive your paper form by the end of January 2022.  

  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?

Etsy will accept changes to 2021 tax information until March 14. After this date, we will no longer be accepting changes and this information will be sent to the IRS and relevant state tax authorities to comply with tax reporting regulations.

  • If you update your 2021 taxpayer information before February 13, you can download an updated form after February 22.

  • If you update your 2021 taxpayer information after February 13, you can download an updated form after March 24. 

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 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 having trouble downloading your 1099-K form? Some sellers are seeing an error page due to a high number of 1099-K downloads happening at the same time. If you have trouble downloading your form, please try again soon.

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. 

Etsy will accept changes to 2021 tax information until March 14. After this date, we will no longer be accepting changes and this information will be sent to the IRS and relevant state tax authorities to comply with tax reporting regulations.

  • If you update your 2021 taxpayer information before February 13, you can download an updated form after February 22.

  • If you update your 2021 taxpayer information after February 13, you can download an updated form after March 24. 

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. You are required to have the same taxpayer information on each of 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. 

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
  • 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.

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