1099-K Reporting Requirements
UPDATE (August 2025):
Due to recent changes in federal law the IRS has reinstated the original 1099-K reporting threshold of $20,000 in gross payments and more than 200 transactions, effective for the 2025 tax year (filed in 2026).
This replaces previous IRS guidance that would have lowered the threshold to $600.
What You Need to Know:
You should continue to track your unadjusted gross sales and number of transactions throughout the calendar year.
Under current law, Mercari is required to file a 1099-K form with the IRS and state taxing authorities if both of the following apply:
- You receive more than $20,000 in gross payments AND
- You complete more than 200 transactions in the calendar year
If both conditions are met, Mercari will:
- File a Form 1099-K with the IRS and any applicable state taxing authorities
- Provide a copy of the form to you by January 31 of the following year
Frequently Asked Questions
1. Are payments calculated based on net or gross payments?
Payments are calculated based on unadjusted gross payments, which include:
- Total item price
- Buyer-paid shipping
- Buyer-paid sales tax
Excluded from gross payments: Buyer-paid fees (i.e. Buyer Service Fees and Payment Processing Fees), refunds, and canceled transactions.
2. What is included in my unadjusted gross payment amount?
Your unadjusted gross payment amount includes:
- The full item price (before deductions or refunds)
- Buyer-paid shipping charges
- Buyer-paid sales tax
Excludes:
- Buyer-paid Service Fee and Payment Processing Fee (since March 27, 2024)
- Canceled or refunded transactions not completed
- Any amounts not processed through Mercari
Seller-paid shipping and Mercari Seller fees are reported as part of the gross item price.
3. Does the unadjusted gross payments amount change if the transaction is canceled?
Yes. Transactions canceled before completion are not included in your gross payments total. Only completed transactions are reported on the 1099-K.
4. What if I don’t submit my W-9 information?
If you do not submit a W-9 form when requested:
- Your ability to sell may be limited
- You may be restricted from completing transactions that would exceed the reporting threshold
- You can update your W-9 at any time via the Tax Center to restore full account functionality
- Mercari may request your w-9 information before you reach the reporting threshold in order to ensure a valid w-9 is on record for all sellers reaching the reporting threshold
5. Will I receive a Form 1099-K for my account?
You will only receive a 1099-K if you meet both of the following:
- More than $20,000 in gross payments
- More than 200 transactions
If you do not meet both criteria, a 1099-K will not be issued. However, you may still have tax obligations related to your selling activity for the year. Please consult a tax professional.
6. When can I expect my Form 1099-K?
Mercari will provide your 1099-K by January 31 following the reportable year:
- Paper delivery: Postmarked by January 31 to the address on file
- Electronic delivery: Available via your Mercari account with email notification
7. Are there instructions on what I should do with my 1099-K for my tax return?
Yes. Keep your 1099-K for your tax records. This form may be used to assist you when reporting income on your federal and state tax returns.
Reminder: Buyer-paid Service Fees and Payment Processing Fees are not included in the gross payment amount.
If you have tax questions, consult a certified tax professional or visit IRS.gov.
8. How do I find my final unadjusted gross payments for a specific year?
To review your sales and payment totals:
- Go to your Seller Dashboard > Sales Report > Yearly Reports
- Review the breakdown of item price, buyer-paid shipping, and sales tax
- Buyer-paid fees (Service Fee and Payment Processing Fee) are excluded
For more details, visit the Mercari Help Center article on Sales Reports.
9. Can Mercari help me with my tax return?
No. While we aim to provide complete sales information, Mercari cannot provide legal or tax advice as to your specific income and deductions. Please reach out to a licensed tax advisor or accountant for help with your filing.
10. How do I update my tax information?
You can update your W-9 information by visiting the Tax Center in your Mercari account. Updates for the prior tax year must be submitted by January 7 each year.
For issues accessing the Tax Center, contact our support team.
11. How does Mercari protect my personal information?
We securely store and transmit your personal information, including your Social Security number or Taxpayer Identification Number, in accordance with our Privacy Policy.
For the most current IRS guidance on Form 1099-K, please visit the official IRS FAQ page