Summer often brings yard sales, storage cleanouts and online sales of unwanted items. If you receive payments through third-party payment apps or online marketplaces such as PayPal, Venmo or eBay, you may receive a Form 1099-K reporting your total payments. This form is required if the payments you receive via the platform during the year exceed $20,000 in more than 200 transactions, though some platforms may issue you one at lower amounts. Form 1099-K reports gross payments, not profit. You generally owe tax only if you sell items for more than you paid for them. (Losses aren’t deductible.) The IRS receives copies of Form 1099-Ks, so keep good records. We’re here if you need guidance.
