Who gets a 1099-K from eBay, Poshmark or Mercari in 2026, why some states ask for less, and the records that keep a form from turning into a tax bill.
Updated October 7, 2026
Before you start
Who gets a 1099-K from eBay, Poshmark or Mercari in 2026, why some states ask for less, and the records that keep a form from turning into a tax bill.
A 1099-K is a form a payment platform sends you and the IRS each January, listing the gross payments you received for goods the year before. For 2026 sales, a platform files one only when you pass $20,000 in payments and more than 200 transactions on that platform.
This page sums up what the IRS publishes on irs.gov. It is general information, not tax advice. If your numbers are large or your situation is mixed, pay a tax professional for an hour.
Kit for this
The products this guide uses, with typical US prices.
QuickBooks
Suits you if your reselling has become a business and you want income, costs and a running tax estimate in one place. It pulls in your bank and card transactions and sorts them into Schedule C categories.
Typical priceCheck current pricing
Visit siteThe guide
Each step in the order you'll need it.
The federal threshold for 2026
The IRS page on understanding Form 1099-K says a platform files the form when payments for goods or services exceed $20,000 across more than 200 transactions in the calendar year. Both conditions have to be met on one platform.
Congress restored this threshold in July 2025, so the lower $2,500 and $600 limits that were planned for 2025 and 2026 no longer apply. Each platform counts separately: $15,000 on eBay and $15,000 on Mercari means no federal form from either.
States that report at lower amounts
A handful of states require platforms to send a 1099-K at a much lower figure, some as low as $600. The list changes, so check your state revenue department's page rather than a forum post.
A state form means the same thing as the federal one: the state knows your gross payments. It does not set a different tax rule for what you sold.
Selling your own things at a loss
Clothes, a couch or an old console you sell for less than you paid are not income. You do not owe tax on a loss on personal items, but you can still receive a 1099-K for them if you cross the threshold.
If that happens, the IRS explains on its 1099-K pages how to show the payments on your return and back them out. Keep a short note of what each item cost you, even a rough estimate with an old receipt or order email.
Selling for a profit or buying to resell
Personal items sold for more than you paid are a gain, and the gain is taxable. A signed jersey bought for $40 and sold for $300 counts.
Buying thrift or estate sale stock to flip is a different activity. That income is taxable from the first dollar of profit, with or without a form, and usually belongs on Schedule C as a business.
No form does not mean no tax
The 1099-K is a reporting tool for the platform. Your duty to report income comes from the tax code, so a $9,000 year of profitable flips is taxable even though no form arrives.
Many sellers learn this the hard way when a platform sends a form for the first time and the IRS compares it with past returns. Report every year the same way and the form changes nothing.
Records to keep from the first sale
For every item, note what you paid, what it sold for, the platform fee, shipping and packaging. Download each platform's yearly sales report in January.
Accounting software can pull in payouts and receipts so the totals match the 1099-K line by line. A spreadsheet works if you keep it up every week.
Kit for this step
Checklist
Run through it before each one goes out.
- 1Check your payments and transaction count on each platform this year
- 2Look up your state's own 1099-K threshold
- 3Split personal items from stock bought to resell
- 4Log cost, sale price, fees and shipping for every sale
- 5Download every platform's yearly sales report in January
- 6Book a tax professional if a form does not match your records
Setups
Complete kits for one kind of seller, costed and laid out.
Questions
Straight answers to what sellers ask about this.
Will eBay send me a 1099-K?
For 2026 sales, only if you receive more than $20,000 across more than 200 transactions on eBay, or pass your state's lower threshold if it has one.
Do I pay tax on a 1099-K for my own old clothes?
Not if you sold them for less than you paid. A loss on personal items is not taxable. You still show the form on your return and back the amounts out as the IRS describes.
Does the threshold add up across platforms?
No. Each platform applies it to the payments it processed for you. Your tax return still covers all of them together.
I sold $5,000 of flipped stock. Do I owe tax?
Profit from buying to resell is taxable even with no form. Report it, usually on Schedule C, and deduct your costs.
What happened to the $600 rule?
A 2025 law put the federal threshold back to $20,000 and 200 transactions. Some states still use $600 for their own forms.
Is this tax advice?
No. It summarizes IRS guidance. A tax professional can look at your own records and state.