This means that for the 2024 tax year, the bar for getting a 1099-K for transactions through Whatnot will stay at $20,000. Third-party settle organizations that are partnered with Whatnot will issue 1099-Ks. Read more about it here. Note: Your gross sales income is the total amount of money you earn from sales.
All U.S. sellers who have used Stripe to cash out in 2025 and meet the 2025 reporting threshold (see below) will receive a 1099-K from Whatnot. 1099-Ks for 2025 will be available via Stripe by January 31, 2026. The 1099-K issued by Whatnot via Stripe will report all 2025 Whatnot earnings.
Whether you have a large or small business, you must send forms to all payees with the exception of corporations and any payee earning under 600 for the year. In other words, all the self-employed independent contractors you paid over $600 in rents, services, awards, or other payments need you to send them a tax form.
Schedule SE: This calculates your self-employment tax. 1099-K: If you earn more than $600 in gross sales through WhatNot, they'll send you a 1099-K. If you sell through other platforms or payment processors, too, you may receive 1099-K forms from them. 1099's are sent to both you and the IRS.
The deadline for filing a 1099-NEC form for the 2021 tax year is January 31st of the following year 2022 (read detailed instructions on how to file form 1099-NEC here). The IRS can impose penalties for 1099 late filing, with fines ranging $50-270 per missing 1099 form, depending on how far past the deadline they are.
If your business fails to issue a Form 1099-NEC or Form 1099-MISC by the deadline, the penalty varies from $60 to $330 per form (tax year 2025), depending on how long past the deadline the business issues the form.
For most payments to individuals (like contractors or for other income/rents), the 1099 reporting threshold is $600, though this increases to $2,000 for tax years starting after 2025 under new law; for payment apps (Form 1099-K), the old threshold was $20,000/200 transactions, but for 2024, a phased-in $5,000 threshold was planned, with the $20k/200 rule (and $10+ in royalties/broker payments) remaining for now for 1099-MISC. Key forms are 1099-NEC for non-employee compensation and 1099-MISC for other payments, with 1099-K for third-party platform payments.
The threshold to get a 1099-K was supposed to drop to $600 starting in 2022. However, the IRS chose to delay this change — two years in a row. This means that for the 2024 tax year, the bar for getting a 1099-K for transactions through Whatnot will stay at $20,000.
A 1099 significantly affects taxes because you're considered self-employed, meaning you pay both income tax and the full self-employment tax (15.3% for Social Security & Medicare), as there's no employer to split it with. This usually means setting aside 25-35% of your income, and you'll likely need to make quarterly estimated tax payments to avoid penalties, though business expense deductions can lower your taxable amount.
The IRS can catch a missing 1099 form as they receive copies from payers. If you forget to report it, you risk penalties and interest on unpaid taxes. To avoid this, report all income, even if you don't receive a 1099. If you discover a missing form after filing, submit an amended return using Form 1040-X.
Earned Income: Employer Wages
A 1099 requirement is triggered when a business pays an independent contractor or unincorporated entity $600 or more (increasing to $2,000 after 2025) in a calendar year for services, or makes other specific payments like royalties or rents, requiring the payer to report these to the IRS using Form 1099-NEC (for services) or 1099-MISC (for other income), unless the recipient is a corporation (with exceptions for law firms).
Does whatnot send you tax information in the mail, from your sales? They send your 1099 in the mail.
If you are eligible for a sales tax exemption, we will need the following information:
Its a 1099-k and you can see sales tax paid by whatnot as they remit the tax portion located under the weekly reports.
Will the IRS catch a missing 1099? The IRS knows about any income that gets reported on a 1099, even if you forgot to include it on your tax return. This is because a business that sends you a Form 1099 also reports the information to the IRS.
Is it increasing your state or federal refund? In general, a 1099-R distribution would decrease or not affect your return unless you had taxes withheld.
You generally don't need to file a US federal tax return if you earn under $5,000 as a W-2 employee, as this is below standard deduction thresholds, but you might still need to file if you're self-employed, have significant investment income, or want a refund of withheld taxes. For self-employment, you must file if your net earnings are $400 or more.
The federal self-employment tax is 15.3%, so you could save money if your income from an activity or pastime qualifies as hobby income. And if your activity generates less than $400 in 2025, you don't need to pay self-employment taxes, even if your income doesn't qualify as hobby income.
If a business pays an individual nonemployee compensation of $600 or more in a year for work performed, the IRS requires them to file Form 1099-NEC. This threshold increases to $2,000 beginning in 2026 and is thereafter indexed for inflation.
Getting Form 1099-K from eBay
If your sales hit the payment threshold, eBay must prepare and send 1099-K copies to the IRS and to you by January 31 of the following year. IRS 1099-K payment reporting thresholds by year: $5,000 in 2024. $2,500 in 2025.