Form 1099-K

Form 1099-K is the information return payment platforms and marketplaces file with the IRS to report payments made to sellers, with a copy sent to the seller.^[1]

It reports gross payments, not profit, so a dealer's 1099-K total will usually be far higher than taxable income once cost of goods and expenses are deducted. The reporting threshold has changed more than once, so check the current figure at filing time.

Keep records that reconcile your 1099-K amounts with your actual sales and costs.