Updated 2/27 - Important 1099-K tax update for US sellers | Announcements

PrintedLinen · 2022-12-30T16:01:22.445000Z

Last year we shared an important announcement from the IRS about updates to the reporting thresholds for US sellers that were intended to go into effect January 1, 2023. The IRS had previously announced a new threshold of $600 for all 1099-K reporting. They’ve now delayed the new reporting threshold until later in 2023. You can read the December 23, 2022 announcement from the IRS here. What does this delay mean, exactly? The existing federal threshold of $20,000 in sales and 200 transactions will remain in effect for now. Unless your state has different reporting thresholds, you’ll only be issued a 1099-K form from the IRS if you exceeded $20,000 in sales and had more than 200 transactions on Etsy in 2022. If you don’t meet the federal threshold, but meet your state’s threshold, you will receive a 1099-K at the end of January. You can learn more about state thresholds here. Etsy is leading efforts in Washington to raise the threshold so that micro and small sellers are not unnecessarily burdened with complicated reporting requirements. That’s why we’re advocating for Congress to permanently raise the $600 reporting threshold. You can join us in advocating to raise the reporting threshold by sending a letter to your member of Congress through the 1099-K Fairness Coalition. Be on the lookout for more resources from Etsy as additional details are released by the IRS in the coming weeks and months. In the meantime, here are a few resources to make it easy to find the info you need to tackle tax time. Check them out: Tax Season Seller Guide What Do I Need to Know About My 1099-K Tax Form? The Ultimate Guide to Taxes for Etsy Shop Owners Please note that tax laws change frequently, and this information is not tax advice. You're responsible for any use of this information. Please consult a tax expert if you have any questions.

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Updated 2/27 - Important 1099-K tax update for US sellers | Announcements | Etsy Community