1099-K Threshold Tracker

A 1099-K is a tax form that third-party payment networks (eBay, Whatnot, PayPal, Fanatics Collect, Mercari, StockX, and others) must send to you AND to the IRS when your gross payments exceed a threshold. For 2025 tax year the federal threshold is $2,500. For 2026 and later the threshold drops to $600 (the "American Rescue Plan" threshold phased in after multiple one-year delays). Each platform calculates its own threshold separately — if you sold $1,000 on eBay and $1,200 on Whatnot in 2026, BOTH platforms will issue a 1099-K because each individually exceeded $600.

Some states adopted lower thresholds years before the IRS did. Massachusetts, Vermont, Virginia, Maryland, and DC use $600 as their state threshold (unchanged since before 2022). Illinois uses $1,000 AND 4+ transactions. New Jersey uses $1,000. Arkansas uses $2,500. If you live in one of these states, platforms issue 1099-Ks based on the LOWER of federal-vs-state threshold. A Massachusetts seller triggered a 1099-K at $600 even in 2024 when the federal threshold was $5,000. The tracker applies your state threshold automatically.

No. A 1099-K reports GROSS payments received — what buyers paid, before fees, shipping costs, or your cost basis. You owe tax only on your NET PROFIT (sale price minus cost basis minus fees minus shipping minus other deductible expenses). Example: you sold a card for $2,000 on eBay. eBay took $300 in fees, shipping cost you $20, and you bought the card for $1,500. Your 1099-K shows $2,000 gross, but your taxable gain is only $180. The tracker estimates taxable gain if you enter cost basis.

The threshold is calculated on GROSS payments — not net after fees. A $2,000 sale on eBay counts as $2,000 toward your threshold even though eBay kept $300. Sales tax collected by the platform generally does NOT count (platforms exclude it). Refunds generally DO reduce the gross if processed through the same platform. Cancelled orders that never charged do not count. Chargebacks on sales that DID charge typically still count until the chargeback is resolved. When in doubt, assume gross payments = threshold math.

You shouldn't try to avoid one — reporting income is required whether or not a 1099-K is issued. The IRS has always required you to report all capital gains regardless of form issuance. BUT you can spread sales across multiple platforms so no single one crosses its threshold, reducing paperwork. The more honest approach is to keep organized cost-basis records so when a 1099-K arrives, you can offset the gross payments with your basis + fees + shipping to compute actual taxable gain. The tracker warns you which platforms are approaching threshold so you can plan — whether that's slowing sales, moving to another platform, or preparing for the form.

Zelle specifically exempted itself from 1099-K reporting — no 1099-K is issued regardless of volume. Venmo F&F transfers are NOT reportable (but Venmo for Business IS — threshold applies). Cash App Personal is not reportable; Cash App for Business is. Facebook Marketplace local cash-and-carry is not reportable. Peer-to-peer cash at card shows is not reportable by a platform, but you still owe tax on any gain. IMPORTANT: buyers paying via F&F for goods are committing payment platform violation, and you bear the risk if they reverse the payment later. The tracker does not track these payment methods because no 1099-K is ever issued — but the income is still taxable.

No. This tool is educational — it tracks YTD payment volume and warns you about 1099-K thresholds. It does NOT prepare your taxes, compute actual federal-plus-state tax owed, handle cost-basis adjustments for inventory turnover, or address business-vs-hobby classification. If card selling is your trade or business (Schedule C), if you sell more than $20K in a year, if you have inherited-card basis questions, or if you sold a grail for a major gain, consult a CPA familiar with collectibles taxation. Collectibles capital gains are taxed differently from stocks (28% cap long-term vs 15-20%). The Card Tax Calculator on this site handles single-sale capital-gains math.