eBay sends a Form 1099-K if your sales top 20,000 dollars and 200 transactions, if backup withholding applied, or if your state has a lower threshold. Getting one doesn't mean you owe tax on all of it: the IRS taxes profit, and personal items sold for less than you paid aren't a gain, but business sales and anything sold at a gain must be reported.
Every January, eBay sellers ask the same thing: do I owe tax on what I sold? The answer depends on what you sold and what you paid for it, not just on whether a form arrives. eBay's own help pages explain the 1099-K rules in detail, and a few of them catch even experienced sellers.
When eBay sends a 1099-K
| Trigger | What eBay says |
|---|---|
| Federal threshold | Over 20,000 dollars in gross payments and more than 200 transactions |
| Backup withholding | Your payments had backup withholding applied, or were subject to it |
| State threshold | You live in a state with a lower reporting threshold |
eBay says the 2025 tax bill permanently restored the federal threshold to 20,000 dollars and 200 transactions, replacing the lower thresholds that had been phased in before. You'll get the form by January 31, in Seller Hub or My eBay, and you can switch off electronic delivery if you want a paper copy.
The combined accounts rule
This catches people who run two shops. If you have more than one eBay account under the same SSN, ITIN or EIN, eBay adds them together for the threshold. If the combined total goes over, you'll get a 1099-K for every account, even ones that wouldn't qualify on their own. Splitting sales across accounts doesn't keep you under the radar.
What the 1099-K figure includes
The 1099-K shows gross payments, based on when eBay processed them, not when the money reached you. It doesn't deduct eBay's fees, refunds, credits or discounts. eBay does leave out sales tax and cancelled transactions. So expect the 1099-K to be higher than what you were paid, and use eBay's 1099-K detailed report in the Payments tab to see the transactions behind it.
Do you owe tax? Business vs personal items
| What you sold | Taxable? |
|---|---|
| Items bought to resell for profit | Yes, report the income and deduct costs |
| Your own used items sold for less than you paid | No gain, so no tax on those sales |
| Your own items sold for more than you paid | Yes, the gain is reportable |
| Items you make and sell regularly for profit | Yes, report it as business income |
The IRS is clear on the principle: you must report income whether or not you get a 1099-K, including personal items such as clothing or furniture sold at a gain. Selling your old sofa for less than you paid for it isn't a profit. The practical problem is proof, so keep a note of what you originally paid for personal items you sell.
Payments eBay didn't process
If PayPal or another payment provider handled some of your eBay payments, eBay says you may get a separate form from them as well, if those payments met the thresholds. Don't count the same sale twice: match each form to the sales behind it.
The correction deadline
If your 1099-K looks wrong, eBay asks you to contact it by March 30, so it has time to review and correct the form by April 15. Have the item numbers and transaction details ready. Make sure the name on your eBay account matches your tax ID and tax return, or you can receive an IRS backup withholding notice.
Backup withholding and your tax ID
eBay asks for your 9-digit SSN, ITIN or EIN once you reach your first sale. If you don't provide it, eBay says your payouts will be put on hold and it may deduct backup withholding. Sellers in California who were subject to state backup withholding also get a California Form 592-B, which they file with their state return to claim the credit.
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Hobby seller or business?
Plenty of people sell on eBay without running a business: clearing out the loft, selling a bike the kids outgrew. Others buy stock to resell, or make things to sell, week in, week out. The second group is running a business and reports income and expenses as one. If you sit somewhere in between, look at why and how often you sell. Buying items specifically to resell at a profit is the clearest sign you're in business.
A seller's year-end checklist
- Download your 1099-K and the 1099-K detailed report.
- Separate business sales from personal items sold at a loss.
- Total your cost of goods, eBay fees, shipping and supplies.
- Check for separate forms from PayPal or other payment providers.
- Raise any errors with eBay before March 30.
My verdict
A 1099-K from eBay isn't a tax bill. It's a gross figure you reconcile against your costs and your personal sales. Keep purchase records for everything you sell and you'll only pay tax on real profit. For the costs side, see my tips for starting a small business and receipt scanner apps.
Frequently asked questions
When does eBay send a 1099-K?
When your sales are over 20,000 dollars with more than 200 transactions, when backup withholding applied, or when your state has a lower threshold.
Do I pay tax on selling my own used stuff on eBay?
Only on items sold at a gain. The IRS says personal items sold at a gain must be reported; selling for less than you paid isn't a profit.
Does eBay combine accounts for the 1099-K?
Yes. Accounts under the same tax ID are combined, and you get a 1099-K for each account if the total is over the threshold.
Why is my eBay 1099-K higher than my payouts?
It reports gross payments without deducting eBay fees, refunds or discounts. Sales tax and cancelled transactions are excluded.
How do I fix a wrong eBay 1099-K?
Contact eBay by March 30 with item numbers and transaction details so it can correct the form by April 15.
