1099-K thresholds by state
Will you get a 1099-K? The thresholds, state by state.
Selling income is taxable from the first dollar, whether or not a form arrives. The thresholds on this page decide only the paperwork: which platforms must send you a Form 1099-K, and which must send a copy to your state. Figures checked against the IRS and state revenue departments on November 9, 2026. Anything we could not confirm on a state source is in its own table and marked as reported, not verified.
Affiliate disclosure: See the Fees earns nothing from the tools named on this page. Link My Books, named below, appears as text only because no paid route is enrolled for it yet. This page is general information about reporting thresholds, not tax advice.
The federal rule, tax year 2025 onward
- The threshold: a platform sends a federal 1099-K only when your gross payments on that platform are more than $20,000 and you had more than 200 transactions. Both conditions, not either one.
- Why it moved back: the One Big Beautiful Bill Act, signed July 4, 2025, restored the $20,000 and 200 transaction rule retroactively. The IRS confirmed the restoration in Fact Sheet 2025-08 and news release IR-2025-107 on October 23, 2025.
- Tax year 2024 was different: a transitional threshold of $5,000 applied, under IRS Notice 2024-85. If you received a form for 2024 at a lower total, that is why.
- Payment cards have no threshold: card payments are reported from the first dollar. The thresholds on this page are for marketplace and app payments, the third party settlement organisations behind Etsy, eBay, PayPal, Venmo, Stripe, Square and TikTok Shop.
The rule that catches sellers outThresholds apply per platform, never combined
Each platform keeps its own running total. Your sales on Etsy and your sales on eBay are never added together, by the platforms or by the IRS rule. A seller under the threshold on every platform receives no federal form, and a seller over it on one platform receives a form from that platform only.
Worked example. You sell $900 on Etsy and $15,000 on eBay, and you live in Massachusetts. Federally, neither platform sends a 1099-K: both totals sit under $20,000. Massachusetts is different. Its $600 state threshold is crossed on both platforms separately, so both Etsy and eBay report your Massachusetts sales to the state, and you should expect the state filing from each. The same income is taxable either way; the thresholds only decide who files the form.
Keep a running total per platform through the year, not one combined figure. The state thresholds below are the reason.
States with their own threshold, verified on state sources
These states require reporting below the federal threshold. Each row was read on the state's own revenue department pages on November 9, 2026.
| State | Threshold | Transaction minimum | Verified on |
|---|---|---|---|
| Massachusetts | $600 or more | None | Massachusetts Department of Revenue, Form 1099 filing requirements |
| Virginia | $600 or more | None | Virginia Tax, 1099-K guidance and Tax Bulletin 20-10 |
| Vermont | $2,000 or more | None | Vermont Department of Taxes, 1099-K FAQ. Note the change: Vermont used $600 through tax year 2025. The state figure follows a federal amount that the 2025 law raised, so Vermont now reads $2,000. |
| Illinois | More than $1,000 | Four or more transactions | Illinois Department of Revenue, Publication 110 |
| New Jersey | $1,000 or more | None | New Jersey Division of Taxation, as cited in state guidance |
| Arkansas | $2,500 or more | None. Any amount is reported if Arkansas tax was withheld. | Arkansas Department of Finance and Administration, as cited in state guidance |
Every other state follows the federal threshold as of November 9, 2026: no separate lower state threshold was found on its revenue department pages. States can legislate a threshold at any session, which is why this table carries a check date.
Reported thresholds, not yet confirmed on a state page
The figures below circulate in platform help pages and secondary trackers, and sellers in these states do receive forms at these levels in practice. We have not located the figure on the state's own revenue page yet, so treat each row as reported and check your state's site before you rely on it. This table is the standing verification queue for this page.
| State | Reported threshold | Status |
|---|---|---|
| Maryland | $600 | Reported, unverified |
| District of Columbia | $600 | Reported, unverified One law firm source describes the DC position as unsettled. |
| Missouri | $1,200 | Reported, unverified |
| Montana | $600 | Reported, unverified |
| North Carolina | $600 | Reported, unverified |
| Rhode Island | $100 | Reported, unverified Single secondary source. The lowest figure in this table, and the one most in need of a state source. |
Sources for the reported table: platform state threshold lists (including Square) and seller trackers, read November 9, 2026. A platform may also send a form below any threshold on this page, which is allowed and does not change what you owe.
When the forms arriveReconciling payouts against the forms
The January problem is rarely the threshold. It is that the gross figure on the form never matches deposits, because fees, refunds and shipping sit between the two. The tool sellers name for closing that gap is Link My Books, which connects marketplace accounts to bookkeeping software and posts payouts net of fees, so the books and the forms can be reconciled line by line instead of guessed at in April.
Who it fits: sellers on more than one platform, or any seller whose 1099-K gross does not match their deposits.
Link My Books, named as text only for nowHow this tracker is kept
Thresholds move. Vermont's figure changed because the federal law it follows changed, and any state can set or move a threshold in a new session. Each verified row names the state source it was read on, and the whole page is rechecked against the IRS and the state pages ahead of each tax season. Figures that only exist in secondary sources stay in the reported table, marked, until a state page confirms them. Nothing on this page is tax advice; it is a reporting threshold reference, and your state revenue department is the final word for your state.
The companion page for the fee side is the marketplace fee change tracker. For the year round record keeping side, see our own seller income tracker and the tax season notes on the seller resources page.
Tax season alertsThreshold changes, by email
One short email when a threshold on this page changes, seller money reminders ahead of tax season, and one email when a marketplace changes its fee schedule. The trackers stay free either way.
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