Yes, eBay does send a 1099-K, but only to sellers who cross a specific federal threshold: more than $20,000 in gross payments and more than 200 transactions in the same calendar year. Both conditions have to be met. Congress restored this pre-2021 threshold in 2025 through the One, Big, Beautiful Bill, ending several years of confusion over a proposed $600 trigger that kept getting delayed.1Internal Revenue Service. IRS Issues FAQs on Form 1099-K Threshold Under the One, Big, Beautiful Bill If you sell casually and stay under either number, you should not receive a federal 1099-K from eBay.
One caveat before anything else: not receiving a 1099-K is not the same as owing no tax. The threshold controls paperwork, not taxability. Profit from selling online is reportable income at any dollar amount.
The Federal Threshold in Detail
The 1099-K rules have shifted several times since 2021. The American Rescue Plan originally lowered the trigger to $600 with no transaction minimum, but the IRS delayed enforcement repeatedly — keeping the $20,000/200-transaction standard for 2022 and 2023, then applying a transitional $5,000 threshold for 2024.2Internal Revenue Service. IRS Announces 2023 Form 1099-K Reporting Threshold Delay for Third Party Platform Payments3Internal Revenue Service. IRS Notice 2024-85
The 2025 legislation reinstated the older standard retroactively. Third-party settlement organizations like eBay are not required to file a 1099-K unless gross payments to the seller exceed $20,000 and the transaction count exceeds 200.1Internal Revenue Service. IRS Issues FAQs on Form 1099-K Threshold Under the One, Big, Beautiful Bill Meet only one, and eBay is not required to issue the form.
If you already received a 1099-K for 2024 under the temporary $5,000 threshold, that form is still valid. Account for it on your return as usual.
State Thresholds Can Trigger a Form Anyway
Several states set their own, lower reporting thresholds for platforms operating within their borders. Some require a 1099-K at gross payments as low as $600, with no transaction minimum. If you live in one of these states, eBay may issue you a 1099-K even when your sales are far below the federal cutoff. The specific number depends on your state’s department of revenue.
When to Expect the Form
eBay must send your 1099-K by January 31 of the year after the tax year it covers.4Internal Revenue Service. Understanding Your Form 1099-K A copy goes to the IRS at the same time. If you crossed the threshold for 2026, expect the form in late January 2027. eBay also makes it available in your seller account for download.
What the Number on the Form Represents
The figure on your 1099-K is almost always larger than your taxable income, and this trips up sellers every year. The form reports gross payments: the total amount buyers paid, including shipping charges, sales tax collected by the platform, and the full sale price before eBay’s fees were deducted. It does not subtract refunds, returns, or what you originally paid for the items.
The 1099-K is informational, not a tax bill. The IRS receives the same number you do and uses it to cross-check your return. If nothing on your filing accounts for that amount, the IRS will treat the entire gross figure as unreported income and send a CP2000 notice asking about the gap.5Internal Revenue Service. Understanding Your CP2000 Series Notice
One quirk worth knowing: any sales tax eBay collected and remitted on your behalf under marketplace facilitator laws may be baked into the gross number on your 1099-K, even though that money never belonged to you.6Seller Center – eBay. Tax Information When you reconcile the form on your return, don’t treat those pass-through amounts as your revenue.
If You Sold Personal Items at a Loss
Selling used personal belongings for less than you originally paid is not taxable income. You took a loss. The 1099-K does not know that; it just reports the sale price.
The IRS directs you to report the 1099-K amount in the entry space at the top of Schedule 1 (Form 1040), then subtract the same amount as an adjustment, so the net effect on your income is zero. You can also report these transactions on Form 8949, which flows to Schedule D.7Internal Revenue Service. Form 1099-K FAQs – Common Situations Keep records showing what you originally paid: a receipt, a bank statement, a screenshot of the original listing price. Without proof of your basis, you cannot demonstrate the loss if the IRS asks.
If the Form Is Wrong or Received in Error
If the amount on your 1099-K is wrong, includes someone else’s transactions, or came from an account you did not operate, contact the issuer immediately. The issuer’s name and phone number appear in the upper left corner of the form. If you cannot get a corrected version, the IRS says to report the incorrect amount on Schedule 1 (Form 1040), Line 8z as “Form 1099-K Received in Error,” then enter the same amount as an adjustment on Line 24z, so the net effect is zero.8Internal Revenue Service. Actions to Take if a Form 1099-K Is Received in Error or With Incorrect Information Save every email and letter exchanged with the issuer in case the IRS follows up.
No 1099-K Does Not Mean No Tax
The reporting threshold is an administrative trigger that tells eBay when to send paperwork. It says nothing about whether your income is taxable. The IRS requires U.S. taxpayers to report worldwide income, including profit from selling goods online, even at small dollar amounts.9Internal Revenue Service. U.S. Citizens and Residents Abroad – Filing Requirements
How you report depends on whether your selling counts as a business or a hobby. If you buy inventory to resell, sell regularly, and operate with the intent to make a profit, the IRS treats the activity as a business, and you report income and expenses on Schedule C (Form 1040).10Internal Revenue Service. About Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship) Business sellers can deduct legitimate expenses, but net profit is also subject to self-employment tax on top of income tax.
If you are just clearing out a closet or occasionally flipping items without a real profit motive, the IRS considers that a hobby. Hobby income gets reported on Schedule 1, Part I, Line 8z as “Other Income.” The catch: hobby expenses are not deductible. The Tax Cuts and Jobs Act eliminated the miscellaneous itemized deductions that once covered them, and that change is still in force. If you earn $2,000 selling old records but spent $1,800 on shipping and supplies, you owe tax on the full $2,000. Sellers who are actually running a small business but call it a hobby often pay more tax than they need to.
Either way, keep documentation. Purchase receipts, shipping records, eBay fee statements, and screenshots of what you originally paid for personal items all matter if the IRS ever asks you to reconcile the number on a 1099-K against what you actually earned.