Filing Etsy taxes without a 1099-K

The threshold for 2025 and 2026

The One, Big, Beautiful Bill put back the threshold that applied before 2022. In the IRS’s words, payment platforms “are not required to file Forms 1099-K unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200.” The IRS says this applies to calendar years 2025 and later.

Gross sales

More than $20,000in the calendar year

And transactions

More than 200both must be exceeded

Applies to

2025 and laterfederal forms

Articles that still quote $600, $2,500 or $5,000 describe the IRS’s earlier phase-in plan (Notice 2024-85: more than $5,000 for 2024, $2,500 for 2025 and $600 from 2026). The new law replaced it for 2025 onward.

Some states use lower thresholds. Etsy says it issues a 1099-K if you meet either the federal threshold or the threshold for your state, so a small shop in one of those states can still get one.

No form, same income

The threshold decides whether Etsy files a form, not whether the money is taxable. The IRS says the threshold “doesn’t affect whether payments are taxable or whether a tax return must be filed.” All income is taxable unless the tax law says otherwise, with or without a Form 1099-K.

If selling on Etsy is a business for you, the IRS says to report it as a sole proprietor on Schedule C, where your expenses come off the sales. Those expenses include every Etsy fee, the part sellers most often undercount when there is no form to start from.

What a 1099-K from Etsy would show

Etsy describes the 1099-K figure as gross sales: “the total amount your buyers have paid you, for the entire year, without subtracting expenses” such as fees, refunds and shipping costs. Sales tax that Etsy collected and remitted as the marketplace is not included. So the form would have shown a bigger number than your deposits, and a bigger one than your profit.

You can work out the same figure without the form. Etsy’s help page gives the method: in Shop Manager, open Settings, then Options, then the Download Data tab, choose the Etsy Payments Sales CSV, and total its Gross column for the year.

Totalling the year yourself

1. Download the twelve monthly statements. Shop Manager, Finances, Monthly statements, View all monthly statements. Pick each month of the year and select Generate CSV; Etsy emails a download link.
2. Optionally, download the year’s Sold Orders and Etsy Payments Sales CSVs from Settings, Options, Download Data. Leave the month empty to get the whole year.
3. Drop them into the Etsy tax summary. It reads them in your browser, takes the sales tax Etsy collected out of sales, nets refunds and fee credits, and totals each fee type, ads, labels and deposits for the calendar year.
4. Copy the totals to Schedule C. Sales go on line 1, refunds on line 2, and the fees, ads and labels on their expense lines. The Schedule C guide shows where each one usually goes.
5. Add the costs Etsy doesn’t know about: materials, packaging, postage bought elsewhere, business miles. Keep the CSV files with your records.

The statements are the better source for the tax return because they show the fees. The Etsy Payments Sales CSV is the better source for checking the 1099-K figure, if you ever need to.

Why the numbers never match each other