The threshold changed, and most of the internet hasn't caught up. If you've read that it's $600, that article is out of date.
Per platform, not combined — each one decides separately. Gross means before fees and shipping come out, which is why the number looks higher than what you actually received.
Getting a form and owing tax are different questions. You owe income tax on your profit whether or not anyone sends you a 1099-K. The threshold only decides whether the platform has to report you. Nothing about it makes income tax-free.
What you paid, what it sold for, the fees, the shipping, the mileage. Resale Inventory keeps all of it as you go and hands you a spreadsheet at tax time — so whether a form turns up or not, you can prove your actual profit.
Try it free for 7 daysThe One Big Beautiful Bill Act, signed in July 2025, put the federal 1099-K threshold back where it was before 2021: more than $20,000 in gross payments AND more than 200 transactions. Both have to be true.
The phased reduction everyone was bracing for — $5,000, then $2,500, then $600 — was cancelled outright. The IRS confirmed this applies to 2025, 2026 and beyond.
This is why so much reseller advice online is wrong right now. Articles written in 2023 and 2024 warned about a $600 threshold that never arrived.
The figure on a 1099-K is what buyers paid, before platform fees, shipping labels and refunds. So a form can show $22,000 when you actually received $16,000 and profited $4,000. You reconcile the difference on your return, which needs records.
$15,000 on eBay and $15,000 on Poshmark is $30,000 in sales and no 1099-K from either, because neither one crossed the threshold alone. You still owe tax on all of it.
A handful set their own thresholds well below the federal one, so a form can arrive even when you're nowhere near $20,000. Worth checking your own state rather than assuming.
This is the one that costs people. All income is reportable. The threshold governs when a platform must send paperwork, not whether the money counts.
Whether a form turns up or not, the numbers you need are the same: what you paid for each item, what it sold for, the fees, shipping, mileage and supplies. Profit is what's taxed, and you can only prove profit if you tracked the cost.
That's the bit people skip, and it's why a 1099-K showing gross payments feels like a much bigger tax bill than it should be.