You may qualify to receive a 1099-K form if you meet certain profit and sales 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.
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 payments 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.
If you run multiple Etsy shops:
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 your combined shop totals qualify, you will receive a separate 1099-K for each shop.
If you are located in Massachusetts or Vermont, you will receive a 1099-K form if:
- You have $600 or more in sales through Etsy Payments in a calendar year
If you also 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 Massachusetts and Vermont. You will still only receive one 1099-K form per shop from Etsy if you qualify based on state and IRS requirements.
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). For more information on this, check out this Seller Handbook post.
For purposes of the 1099-K tax form, the following payments are not considered "Etsy-processed payments":
- Payments processed through your own PayPal account
- 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 mail out 1099-K forms or have forms available to download for qualifying sellers by the end of January. Beginning with 2018 forms, you can sign up for electronic delivery of your 1099-K form.
If you believe you’ve met the 1099-K requirements through Etsy Payments within the calendar year but haven’t received a 1099-K form in the mail by the end of February, you can sign up for electronic delivery or click Contact us at the bottom of this page.
You should also ensure that you have the correct taxpayer details, including the most up-to-date mailing address, on file with your shop. Learn how to update your taxpayer details.
How to sign up for electronic delivery of your 1099-K form
To sign up for electronic delivery:
- On Etsy.com, click Shop Manager.
- Click Finances.
- Click Taxpayer ID.
- Click Sign up for an electronic 1099-K.
- To download your e-form, click Download 1099-K (2018). Your e-form will download as a PDF file. Don’t leave the page until the download is complete.
Electronic delivery won’t be available for forms from before the 2018 tax year.
If you opt in for electronic delivery, you won’t receive a paper 1099-K form in the mail. If you want to receive a paper copy in addition while signed up for e-forms, click Contact us at the bottom of this page.
If you don’t opt in, you’ll receive a paper 1099-K form in the mail.
You’ll remain opted in to electronic delivery until you opt out. That means that if you qualify for a 1099-K next year, you’ll receive your 1099-K form electronically unless you opt out. To opt out, click Opt out of electronic delivery on the Taxpayer ID page.
I need to update the taxpayer information on my 1099-K e-form
The deadline for 2018 taxpayer information changes was March 1st, 2019. If you need help, click Contact us at the bottom of this page.
How do 1099-K e-forms work if I run multiple Etsy shops?
If you run multiple Etsy shops, you need to sign up for and download your 1099-K e-form for each of your Etsy shops.