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Every year, as small business owners are preparing their taxes, I get the same question: When will I receive my 1099 from Etsy (or other online marketplace)? Answer: 1099’s are required to be mailed by January 31st. If you have not yet received it well past this date, you may have not met the qualifications.
The laws are changing. The information below is good through 2021:
What is a 1099-K?
Similar to a 1099-MISC, a 1099-K reports gross sales from a payment processor. The figure shown on your 1099-K is your gross sales which include shipping, refunds, card processing fees, sales tax, and even canceled orders.
Who Will Receive a 1099-K?
In order to receive a 1099-K from Etsy, Amazon, Paypal, or Stripe, you must have had at least 200 direct checkouts AND $20,000 in transactions. If you do not meet both requirements, you will not receive a 1099-K.
Starting in 2022, the federal threshold for issuing a 1099-K will drop from $20,000 and 200 transactions to $600 with no minimum transaction level. This means that you will receive a 1099-K if you have more than $600 in checkouts. This change is due to a new federal law called the American Rescue Plan Act.
Since 2015, Christine Schinagl has been helping crafters start and run craft businesses through her blog, Cutting for Business. As a Silhouette and Cricut crafter herself, she has a unique take on what works and what doesn’t work in the craft business world. She also teaches a course on creating digital SVG designs, available at How to Design SVGs.