Will you receive a 1099 for your craft business this year?

As small business owners are preparing their taxes for 2015, I’ve had several Cutting for Business readers ask me the same question: When will I receive my 1099 from Etsy (or other online marketplace)? Answer: 1099’s are required to be mailed from Etsy (or your other payment processor) by January 31st. If you have not yet received it, you may have not met the qualifications.

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 from Etsy?

In order to receive a 1099-K from Etsy, 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.

(If you are not an Etsy seller: Paypal, Stripe, and Square send out 1099-K forms at 200 transactions AND $20,000 in transactions.)

Now that you know about 1099-K’s, I covered taxes for a whole week towards the end of last year. As you are prepping your 2015 taxes, you can find those posts at this link.