For 2024, Whatnot is partnering with Stripe to provide a 1099-K to U.S. sellers who have a connected Stripe account linked to their Whatnot profile. All U.S. sellers who have a connected Stripe account and earned more than $5000 in 2024 (see below on the 2024 reporting threshold) on Whatnot will receive a 1099-K from Whatnot.

1099-Ks for 2024 will be available via Stripe in January 2025.

The 1099-K issued by Whatnot via Stripe will report all 2024 Whatnot earnings, including those cashed out via PayPal. 

In addition to a 1099-K, Whatnot will issue a Seller Statement for 2024, breaking down all of your income and expenses on Whatnot for the year.

Notes for U.S. sellers who have used PayPal to cash out:

• If you do not have a connected Stripe account linked to your Whatnot profile, i.e., you have exclusively used PayPal to process your cash-outs, you will not receive a 1099-K from Whatnot.
  • See the steps here to establish a connected Stripe account so that you receive a 1099-K from Whatnot reporting all 2024 Whatnot earnings.
  • Sellers that create a new connected Stripe account will be prompted to provide all of the information needed to issue a 1099-K upon onboarding rather than needing to confirm anything with Stripe via email as described below.
• Sellers that have used PayPal and Stripe to cash out earnings from Whatnot may also receive a 1099-K from PayPal reporting those payments (plus any other payments made via PayPal, Venmo, etc.).

What do I need to do?

Now: If you have only ever cashed out via PayPal, follow the instructions here to create a connected Stripe account.

Starting November 11, 2024: Sellers with a pre-existing connected Stripe account will receive an email invite from Stripe to kick off the 1099-K process. Sellers will be asked to confirm or update their tax information and opt into paperless delivery of their 1099-K.

Sellers will be asked to provide their email and phone number to access the Stripe tool for 1099-K reporting. Stripe will present a series of identity verification questions (name, TIN, and DOB) to validate that you own the account. If you don’t know these details, you’ll be asked to provide follow-up information such as address, bank last 4, and last payout amount from the platform to verify your identity. If you fail these questions after multiple attempts, Stripe will kick off a manual review through Stripe Express support.

Before January 31, 2025: Whatnot will issue 1099-Ks to U.S. sellers who exceed the IRS threshold or an applicable state threshold in tax year 2024 via Stripe. Whatnot will also issue detailed annual Seller Statements for tax year 2024.

FAQs

What is IRS Form 1099-K?

1099-Ks are information forms reporting payments received from third-party settlement organizations. The forms are provided to the payment recipient and the IRS. The IRS also makes the information available to state tax departments or, in some cases, the form itself is also filed directly with the state.

What is the threshold for receiving a 1099-K?

Sellers will receive a 1099-K if, during tax year 2024, the gross amount of reportable payment transactions you received exceeds $5000, regardless of the number of transactions. The gross amount of reportable payment transactions does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, shipping amounts, or any other amounts. 

Note: On November 26, 2024, the IRS changed the 2024 1099-K reporting threshold from $600 to $5000 (in 2025, it will be $2500). Refer to the IRS website here for more information.

When will I receive my 1099-K? 

Whatnot will issue a 1099-K to all eligible U.S. sellers via Stripe no later than January 31, 2025, if you have payments exceeding the IRS threshold or a state threshold in tax year 2024. Stripe will deliver the 1099-K electronically or via mail, depending on the method you select.

If I have only ever used PayPal to cash out, how can I get a 1099-K from Whatnot reporting all my earnings? 

All Whatnot sellers who have created a connected Stripe account and are over the reporting threshold will receive a 1099-K from Whatnot reporting all of their earnings for 2024. If you have exclusively used PayPal to cash out, and you do not have a connected Stripe account associated with your profile, you can create one by following the instructions here.

Sellers that have used PayPal and Stripe to cash out earnings from Whatnot may also receive a 1099-K from PayPal reporting those payments (plus any other payments made via PayPal, Venmo, etc.).

Sellers who have exclusively used PayPal to cash out and do not create a connected Stripe account will not receive a 1099-K from Whatnot. Those sellers may receive a 1099-K from PayPal including amounts cashed out from Whatnot, plus any other payments processed by PayPal. Whatnot has no input into the 1099-Ks issued by PayPal.

All sellers, regardless of which payout method they have used, will receive a 2024 Seller Statement from Whatnot breaking down their income and expenses on the platform.

How will I receive my 1099-K from Whatnot?

You will receive a link to your Stripe dashboard via email, and you will have access via Stripe Express. 

If you have any trouble accessing your Stripe dashboard or viewing your 1099-K, we recommend reviewing the following FAQs:

• Where can I find my invite for setting up e-delivery?
• How do I get a new invite link to set up my Stripe Express account to access my tax forms?

You can also contact Stripe’s support team here.

How do I know if I have a Stripe connected account linked to my Whatnot account?

If you have ever cashed out using Stripe, you will have a connected Stripe account linked to your Whatnot account. If you have not used Stripe to cash out before, you can follow the instructions here to set up a connected Stripe account.

What should I do if I receive a 1099-K?

If you receive a 1099-K, it means the IRS has been informed of your payment activity. Receiving a 1099-K (or not) does not change your obligation to report all of your earnings.

If you need help with taxes, Whatnot has partnered with Keeper to offer an exclusive discount code to Whatnot sellers. Keeper’s software is specially designed for those receiving 1099-Ks for hobbies, side hustles, and growing businesses.

Keeper has also published an article with key tax considerations for Whatnot sellers in the U.S.

What happens if I do not receive a 1099-K?

Even if you do not receive a 1099-K, the IRS still requires you to report all income from your sales on your federal and/or state tax returns. Please consult with a tax professional for assistance reporting or understanding your tax obligations.

Why am I receiving a 1099-K for this year and not last year?

The reporting threshold for 2024 is much lower than in prior tax years: $5000 for 2024 versus $20,000 and 200 transactions (measured as cash out by payment providers such as PayPal and Stripe) for prior tax years. The vast majority of sellers cashed out less than 200 times in prior tax years and so most were unlikely to receive a 1099-K.

Given the lower reporting threshold for 2024, Whatnot has partnered with Stripe to provide the 1099-Ks for 2024 rather than solely relying on the payment providers.

Can I opt out of receiving a 1099-K?

No. If you exceed the IRS reporting threshold, there is a legal requirement for Whatnot to provide a 1099-K to each seller and file this information with the IRS.

What if I have multiple Whatnot accounts?

Stripe will consolidate your 1099-K by taxpayer identification number (TIN), such as SSN or EIN. If you have multiple Whatnot accounts associated with the same TIN, the reporting threshold will be calculated by combining the payments you received across all of those accounts. If you exceed the reporting threshold, you will receive one 1099-K for all of the accounts under that TIN.

What are the state thresholds for reporting?

Several states also require 1099-Ks to be filed either directly with the state or indirectly made available to the state by the IRS through the Combined Federal/State Filing Program (CF/SF)].

If you do not meet the IRS reporting threshold, you will still receive a 1099-K if you are based in one of the states that have a lower reporting threshold and your payments exceed that threshold. In this case, the 1099-K will be reported only to the state.

Note: Not all states have finalized their 1099-K requirements for the tax year 2024. The following states may have lower thresholds in 2024, requiring state reporting: Arkansas ($2500), California ($600), DC ($600), Illinois ($1000 and 4 transactions), Maryland ($600), Massachusetts ($600), Montana ($600), New Jersey ($1000), North Carolina ($600), Vermont ($600), Virginia ($600).

More Information

For more information on the 1099-K process via Stripe, we recommend reviewing this help page. Do not hesitate to contact Whatnot Support with any further questions.

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.