Whatnot and Form 1099-K

Whatnot Sellers based in the US may receive an IRS Form 1099-K when certain sales and transaction thresholds through third-party settlement organizations are met. If you received payouts from multiple authorized third-party settlement organizations, you may receive multiple Form 1099-K if your transactions meet the IRS reporting thresholds. If you are not a US person (as defined by the Internal Revenue Service) or do not meet the requirements below, you may not receive a form 1099-K. 

IRS regulations require third-party settlement organizations (Stripe, PayPal, or Dwolla at Whatnot) to issue Form 1099-K to Sellers who have earned more than $20,000 and had over 200 transactions in a calendar year. Additionally, some states have lower thresholds that may trigger a 1099-K being issued.

Note: Not all states have finalized their 1099-K requirements for the tax year 2022. 

Frequently Asked Questions

When will I receive my 1099-K? 

1099-Ks will be issued by third-party settlement organizations no later than January 31, 2023, if you exceed either the IRS threshold or an applicable state threshold for the 2022 calendar year. Please reach out to the appropriate settlement organization with questions or visit IRS.gov for more information regarding 1099-Ks. 

What happened to the $600 reporting threshold?

The American Rescue Plan of 2021 introduced the first significant changes to reporting requirements since the law was passed, lowering the reporting threshold from $20,000 to $600. On December 23, 2022, the IRS announced that they would use the 2022 tax year as a transition year for the threshold change. For the 2022 tax year, the previous thresholds apply ($20,000 in payments from over 200 transactions).

Where can I see my earnings in 2022 if I do not receive a 1099-K? 

Whatnot Sellers can see their transaction history on the Whatnot platform in their Seller Hub.

Whatnot does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and should not be relied upon for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before acting on the information above.