Tax season is coming, so this is a good time to understand how Form 1099-K works and what’s changing for 2026. This applies to all sellers who sell online — whether you sell on Amazon, Walmart, TikTok Shop, Shopify, eBay, or other marketplaces.
Remember, even if you do not receive a Form 1099-K because you are below the reporting threshold, you are still required to report all income on your tax return. The 1099-K does not determine whether income is taxable. It is simply a reporting form that marketplaces and payment platforms send to the IRS. Your responsibility to report income exists regardless of whether a form is issued.
What should sellers do when they receive a Form 1099-K?
When you receive a Form 1099-K, do not file it by itself and do not treat it as your tax bill. Review the form and compare it with your own records. The amount shown is gross sales, before refunds, fees, shipping, or expenses. Use it as a reference when preparing your tax return to make sure your reported income is accurate. Keep the form for your records and share it with your accountant or tax preparer if you work with one.
What’s changing for 2026
Due to a recent IRS rule change, for sales made after January 1, 2025, online marketplaces and payment platforms are required to issue a Form 1099-K if both of the following are true:
- You received more than $20,000 in gross (unadjusted) sales
- You had more than 200 transactions in the calendar year
If you meet both thresholds, you should receive your Form 1099-K by January 31, 2026. Platforms like Amazon or Walmart will notify you by email when the form is ready for download.
This rule is not platform-specific. It applies across all third-party marketplaces and payment processors, including Amazon, Walmart, TikTok Shop, payment apps, and other selling platforms.
What is Form 1099-K?
Form 1099-K reports payments you received for goods or services during the year. It includes payments made through:
- Credit, debit, or gift cards
- Online marketplaces
- Payment apps and third-party payment processors
The platform sends a copy to the IRS and a copy to you. The amount reported is gross sales, before refunds, fees, shipping, or taxes.
You should use Form 1099-K together with your own records when filing your tax return.
Who sends Form 1099-K?
Form 1099-K is sent by:
- Online marketplaces (Amazon, Walmart, TikTok Shop, etc.)
- Payment apps and processors
- Other third-party settlement organizations
They are required to send it to you by January 31 each year.
Who receives Form 1099-K?
You may receive a Form 1099-K if:
- You accept direct card payments for goods or services
- You sell through online marketplaces or payment apps and exceed $20,000 in sales and 200 transactions
If you sell on multiple platforms, you may receive more than one Form 1099-K.
It’s also possible to receive a Form 1099-K even if you are below the threshold, depending on the platform.
Important reminder for sellers
Even if you do not receive a Form 1099-K, you are still required to report all taxable income on your tax return.
Form 1099-K is a reporting document, not a tax bill. It does not determine what you owe — it simply reports payments received. You are responsible for accounting for refunds, expenses, fees, and cost of goods sold correctly.
Personal payments from friends and family
Personal payments are not taxable and should not be included on Form 1099-K. This includes:
- Reimbursements from friends or roommates
- Gifts for birthdays or holidays
- Shared expenses like meals or rides
When possible, mark these payments as non-business in your payment apps.
Disclaimer: This content is for informational purposes only and is not financial or tax advice. We are not tax professionals. For official guidance, please visit the IRS website and consult your accountant or tax advisor.
