Reseller Taxes is a free guide to US federal tax for people who resell online. You pay tax on reselling profit, not on sales, with or without a 1099-K; for 2025 and 2026 a marketplace has to send that form only above $20,000 and 200 transactions. Each guide below names the source and the tax year behind its figures.
Which 2026 tax figures matter to resellers?
Seven figures matter here: the 1099-K threshold, the self-employment tax rate, the Social Security wage base, mileage, estimated tax dates, the standard deduction and the de minimis safe harbor.
| Figure | Amount | Source |
|---|---|---|
| 1099-K threshold (marketplaces and payment apps) | Over $20,000 and over 200 transactions | IRS Publication 1099 (2026) |
| Self-employment tax | 15.3% of 92.35% of net profit; none if that's under $400 | Schedule SE |
| Social Security wage base | $184,500 | IRS Publication 15 (2026) |
| Business mileage | 72.5¢ a mile Jan 1 to Jun 30; 76¢ Jul 1 to Dec 31 | IRS standard mileage rates |
| Estimated tax due dates | Apr 15, Jun 15, Sep 15, 2026; Jan 15, 2027 | 2026 Form 1040-ES |
| Standard deduction | $16,100 single; $32,200 married filing jointly | IRS, IR-2025-103 |
| De minimis safe harbor | $2,500 per invoice or item; not for inventory | IRS tangible property rules |
Which three things should resellers get right first?
Get these three right first: profit, not sales; inventory isn't spending; and eBay doesn't withhold your tax.
- Profit, not sales. You're taxed on what's left after the cost of goods and expenses. A 1099-K reports gross payments, a larger number, and eBay's version of the form is no exception.
- Inventory isn't spending. Stock you bought and haven't sold is an asset. It becomes a deduction in the year it sells.
- eBay doesn't withhold your tax. Once it has a valid taxpayer ID for you, the full payout arrives and part of it isn't yours. The fix is mechanical: move a percentage to a separate account the day money lands.
How does this site handle tax figures?
Tax figures change, and several changed in 2025 and 2026 alone: the 1099-K threshold went back to $20,000 and the 2026 mileage rate rose mid-year. So figures here name their tax year and link to the IRS document or, for eBay's rules, the eBay help page that supports them, and the pages are rechecked each winter when new rates and forms come out. If a figure here ever disagrees with IRS.gov, IRS.gov wins. Tell us and we'll fix it.
What is Reseller Taxes?
Why is my 1099-K so much higher than my income?
How much should resellers set aside for tax?
The guides
Reseller tax basics: what's taxable and what isn't
Profit, not sales. Personal items, hobby or business, and self-employment tax.
6 min readeBay taxes: what you owe and when eBay sends a 1099-K
The $20,000 and 200 rule, what's inside eBay's number, where to download it, and the tax on profit.
9 min readThe 1099-K, explained for resellers
Why the number is bigger than your income, and how to reconcile it line by line.
5 min readThe 1099-K threshold for 2025 and 2026, and how it got here
Over $20,000 and over 200 transactions: the rule for 2025 and 2026, and every change since 2021.
6 min readDeductions for resellers
2026 mileage, supplies, storage, home space for inventory, and the records each one needs.
6 min readQuarterly estimated taxes for resellers
The 2026 due dates, who has to pay, the safe harbor, and the share of profit to set aside.
5 min readSchedule C for resellers, section by section
Gross receipts, cost of goods sold, the expense lines that apply, and where postage goes.
5 min readCost of goods sold for resellers
Why unsold stock isn't a deduction yet, and how to track cost without drowning.
6 min readHow much to set aside for taxes on 1099 income: a reseller’s guide
Your tax set-aside should be based on reseller profit, not the gross amount on Form 1099-K.
13 min readWhat is Schedule SE? A clear guide to self-employment tax
Schedule SE is the form that figures Social Security and Medicare taxes on self-employment earnings.
11 min readHow to pay quarterly taxes: A step-by-step guide for self-employed sellers
Estimated payments help you pay federal tax during the year rather than waiting until you file.
12 min readNet profit vs gross profit: formulas, differences, and when each matters
Gross profit and net profit answer different questions: one focuses on direct costs, while the other reflects a wider set of expenses.
12 min readForm 1040-ES: How to calculate and pay estimated taxes for 2026
Form 1040-ES helps you estimate and pay federal tax during the year rather than waiting until you file your annual return.
14 min readMercari taxes: what the 1099-K shows and what to report
Why a Mercari 1099-K shows gross sales, not profit, where the Tax Center and the form are, and where your own things sold at a loss go on a 2025 return.
9 min readForm 8949: How to Report Capital Gains and Personal Item Sales
Form 8949 gives you a place to report capital-asset sales and explain certain differences between your records and information returns.
13 min readGot a 1099-K but not a business? Here's where each sale goes
Gifts, personal items at a loss or a gain, resale and hobby: which form each one goes on for 2025.
10 min readStartup Costs for a Reseller: What You Can Deduct Before the Business Opens
A cost paid before your first sale is not automatically deductible as a startup expense.
13 min readDo resellers need an EIN as a sole proprietor?
The IRS list of who needs an EIN, applied to a reseller, what eBay asks for, and why the application is free.
6 min readDoes Zelle Report to the IRS? Local Sales, 1099-K and What You Still Owe
Zelle generally does not report network payments to the IRS or issue Form 1099-K. That does not determine whether the money you received is taxable.
12 min readW-9 vs 1099: Which Form You Give and Which One You Get
A W-9 and a 1099 serve different steps in tax reporting: one supplies information, and the other reports payments.
15 min readDepop taxes: what the 1099-K shows and what to report
Why Depop's 1099-K shows gross sales, not profit, how the form reaches you, and where your own items sold at a loss go on a 2025 return.
10 min readSole Proprietor or LLC for a Reseller: What Changes on Your Tax Return
If you are choosing between operating as a sole proprietor and forming a single-member LLC, the federal tax return may look much the same at first.
12 min readIs an EIN the Same as a Tax ID? EIN vs TIN vs SSN for Sellers
The short answer is that an EIN is a tax ID, but “tax ID” can mean several different numbers.
13 min readShopify 1099-K: What Shopify Payments Reports and How to Reconcile It
A Shopify 1099-K is a starting point for checking payment activity, not a statement of business profit.
13 min readTicketmaster 1099-K: what it means and how to report it
Why the form shows the gross, not your profit, how to check the email safely, and where a ticket sold at a loss goes on a 2025 return.
9 min readWhat Is a W-9 Used For? When a Seller Fills One Out and Where It Goes
A W-9 gives a requester the taxpayer details it may need for information reporting.
12 min readWhy eBay asks for your Social Security number
The tax rule behind the request, what happens without a valid number, B Notices, EINs, and how to enter it safely.
10 min read
Disclosure We build FlowLister and publish Reseller Taxes. FlowLister writes eBay listings from item photos, with a price taken from sold listings, and for a reseller that listing becomes part of the record of what sold. It's AI, so it misses things. It doesn't prepare taxes or keep books, and nothing on this site is tax advice.