eBay 1099-K for Card Sellers: The 2026 Rules, Explained
The threshold went back up, the form still reports gross — not profit — and your cost basis is what saves you. Here’s what card resellers actually need to know.
The threshold is back to $20,000 and 200 transactions
After years of whiplash, the July 2025 tax law (the One Big Beautiful Bill Act) permanently restored the original federal 1099-K threshold: marketplaces like eBay and Whatnot send you a 1099-K only if you exceed both $20,000 in gross payments and 200 transactions in a calendar year. The much-feared $600 rule never took effect, and the transitional $5,000/$2,500 thresholds were scrapped. This applies to tax year 2025 and onward (IRS Fact Sheet 2025-08). eBay issues forms by January 31 and aggregates all accounts under the same SSN or EIN.
Some states didn’t get the memo
State thresholds can be far lower. Illinois requires a 1099-K above $1,000 with 4 or more transactions. Massachusetts, Vermont, Virginia, and Maryland have historically used $600 (some sources now report $1,500). If you live in one of these states, you can receive a form at hobby-level volume — check your state’s revenue department for the current figure.
The form reports gross — your cost basis is everything
Box 1a of a 1099-K is your gross payments: it does not subtract refunds, eBay fees, shipping labels, or — critically — what you paid for the cards. The IRS does not think you made $30,000 because the form says $30,000; but it’s on you to document the difference. A seller with $30,000 gross, $22,000 of card costs, and $4,000 of fees and shipping made $4,000 — and pays tax on $4,000. Without purchase records, you can’t prove that.
No 1099-K ≠ no taxes
The threshold controls paperwork, not taxability. Profit from flipping cards is taxable from the first dollar, form or no form. What the higher threshold actually buys you is fewer mismatch headaches — not a tax exemption.
Hobby vs. business: where the deductions live
Hobby sellers report income but generally cannot deduct expenses under current law — the worst of both worlds. Business sellers file Schedule C and deduct: cost of goods sold (what you paid for the cards you sold), marketplace fees (eBay, Whatnot, PayPal), shipping and supplies, grading fees (PSA, SGC, BGS), and ordinary overhead like card savers and boxes. Regular, profit-motivated selling generally points to business treatment — and dramatically better tax math.
The records that make tax season painless
- Purchase date, source, and price for every card (your cost basis)
- Sale date, platform, gross amount, and fees for every sale
- Grading submissions: fees and shipping, allocated per card
- Overhead: supplies, postage, subscriptions
If you have those four things, reconciling a 1099-K takes minutes. If you don’t, you’re reconstructing a year of eBay orders in March.
Frequently asked questions
- What is the eBay 1099-K threshold for 2025 and 2026?
- More than $20,000 in gross payments AND more than 200 transactions in a calendar year — both conditions must be met. The July 2025 tax law (the One Big Beautiful Bill Act) permanently restored this threshold; the $600 rule never took effect. eBay sends 1099-K forms by January 31. Some states have lower thresholds.
- Do I owe taxes if I don’t get a 1099-K?
- Yes. The 1099-K threshold only controls whether eBay sends a form — it does not change what is taxable. Profit from selling cards is taxable income whether or not you receive any form.
- Is the 1099-K amount what I owe tax on?
- No. Box 1a reports your GROSS payments — before refunds, eBay fees, shipping, and most importantly your cost basis. You owe tax on profit, not gross. A seller with $30,000 gross who paid $22,000 for the cards and $4,000 in fees and shipping has $4,000 of profit, not $30,000.
- What can card resellers deduct?
- If you operate as a business (Schedule C), you can deduct the cost of the cards you sold (COGS), marketplace fees (eBay, Whatnot, PayPal), shipping costs and supplies, grading fees (PSA/SGC/BGS), and ordinary overhead. Hobby sellers must report income but generally cannot deduct expenses under current law.
- Which states have lower 1099-K thresholds?
- A handful of states require reporting below the federal $20,000/200 level. Illinois uses $1,000 with 4+ transactions. Massachusetts, Vermont, Virginia, and Maryland have historically used $600 (some sources now show $1,500). If you live in one of these states, you may receive a 1099-K at much lower volume — check your state’s revenue department.
Selling on Whatnot too? Every fee is itemized in the Whatnot fee calculator.