Does Etsy Send You a 1099?

Income Reporting on Etsy

  • Etsy sends you a 1099 if you meet the IRS requirements. You’ll get a 1099-K form if you make over $20,000 and have over 200 sales. You may also get a 1099-MISC for things like referral fees. Etsy automatically sends them if you meet the thresholds.

  • The 1099-K has your total gross sales. You’ll need to deduct business expenses like fees, shipping, supplies, etc. when you file taxes. The 1099-MISC may have other income to report like from ads or special programs.

  • Etsy is required to issue a 1099-K form if you had $20,000 USD in sales through Etsy Payments during the calendar year AND you received 200 or more payments through Etsy Payments over that period.

Tax and 1099 Information

  • You must pay income tax on your Etsy income. The Etsy website reports your gross earnings to the IRS on Form 1099-K. You are required to report Etsy sales income on your tax return regardless of whether or not you receive a 1099-K.

  • Receiving a 1099-K form doesn’t necessarily mean you’ll owe taxes on your Etsy sales. The form doesn’t calculate your profit or indicate any tax liabilities, it simply gives the total gross sales processed.

Miscellaneous

  • If you have not updated your mailing address or tax information on Etsy, your 1099 form may be delayed or sent to the wrong address. Additionally, if you have not verified your identity with Etsy, your 1099 form may be delayed.

  • Determine your gross sales income by signing into Etsy and going to “Shop Manager” then choose “Settings”.

  • Make sure your Etsy account has the correct information so your 1099-K is accurate.

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