I see that you can't transfer your shop to anyone, but can my husband put his name on as the owner for tax purposes? He's been running the day to day operations since I've gone on disability but the business runs the same. Same products, I just want his name on it instead of mine. Will Etsy suspend my shop if I change the name to his and provide his ID and banking info?
You can't change shop ownership.
You can try contacting Etsy but I bet the answer will still be no.
Yes. If you attempt to change foundational ID metrics, you risk your seller account. Look at this from Etsy's perspective. Banned users soon learn the only way they can return to the platform undetected is by using a sympathetic friend's or family member's identity. When they find out they will be paying personal income tax on the shop's revenue going through their bank account - the offer to use their ID is withdrawn.
It's not an Etsy thing either. Under the INFORM Act, seller identity must be verified.
It would probably be easier to just open a new shop with your husband's ID and info.
If you file a joint return either of your names work the same for tax purposes so I would leave well enough alone.
Sales are considered income and depending on how much income she makes from her Etsy shop, it could affect her disability benefits.