Whatnot 1099 and Taxes: What Sellers Need to Know

If you sell on Whatnot in the US, sooner or later you will wonder about the Whatnot 1099. The short version: Whatnot issues Form 1099-K to sellers who meet the federal reporting threshold, which, after a 2025 federal law change, is back to more than $20,000 in gross payments and more than 200 transactions in a calendar year. Some states set lower thresholds, so you may receive a form below that level.

The more important point is that a 1099-K is a reporting form, not a tax bill. All profit from reselling is taxable income whether or not you receive one, and the gross amount on the form is not the same as your profit. This guide explains when Whatnot sends a 1099, what it shows, how to get yours, what you can deduct, and how to estimate what you might owe.

Does Whatnot Send a 1099?

Yes. Whatnot, like other payment platforms and marketplaces, is a third-party settlement organization for reporting purposes, so it must issue Form 1099-K to US sellers who meet the reporting threshold. The form reports the gross payments processed for you during the calendar year.

The Federal 1099-K Threshold

The federal threshold has changed several times in recent years, which caused a lot of confusion. Legislation in 2021 had scheduled a much lower $600 threshold, and the IRS phased it in gradually. In 2025, federal law reverted the threshold to its original level: more than $20,000 in gross payments AND more than 200 transactions in a calendar year. Both conditions must be met for the federal requirement to apply.

State Thresholds

Some states have their own, lower reporting thresholds for 1099-K forms. If you live in one of them, Whatnot may issue a 1099-K even though you are below the federal threshold. Check your state's current rules or ask your tax professional.

Does Whatnot Report to the IRS?

When a seller meets the threshold, Whatnot files the 1099-K with the IRS and gives you a copy. Some states receive copies too. The IRS can then match the reported gross payments against what you report on your return.

Even if you do not receive a 1099-K, you are still required to report your business income. The threshold decides when Whatnot must file a form; it does not decide whether your profit is taxable. Assuming that "no 1099 means no tax" is one of the most common and costly mistakes new resellers make.

Backup Withholding

If you do not provide valid taxpayer information when Whatnot requests it, payment platforms may be required to apply backup withholding to your payouts. Completing your tax details promptly avoids this.

When Does Whatnot Send 1099 Forms?

Platforms are generally required to provide Form 1099-K to recipients by January 31 following the tax year. So for sales made in 2026, you would expect a form by the end of January 2027 if you qualify. Forms are typically available electronically through your account, and may also be mailed to the address on file.

If you expect a form and have not seen it by early February, check your account's tax documents area, confirm your email and mailing address, and then contact Whatnot support.

How to Get Your 1099 From Whatnot

1. Complete your tax information in your seller settings: legal name or business name, address and taxpayer identification number (SSN or EIN).
2. Consent to electronic delivery if offered, so you can access your form as soon as it is issued.
3. Check your account's tax section in your seller tools after the January deadline. The help center explains where tax documents are found.
4. Review the form carefully. Confirm your name, TIN and the gross amount against your own records.
5. Request a correction from Whatnot support if anything looks wrong, such as an incorrect TIN or an amount that does not match your sales.

If you operate through an LLC or other entity, make sure the tax information on your seller account matches how you file. Our guide to whether you need an LLC to sell on Whatnot covers the business setup side.

What the 1099-K Shows (and Why It Is Not Your Profit)

A 1099-K reports gross payment amounts. That figure is generally before Whatnot's fees are taken out, and it can include amounts such as shipping the buyer paid. It does not account for what you paid for inventory, supplies or any other cost.

Here is a simplified illustration of the difference between gross and profit:

The numbers are hypothetical, but the shape is typical: reported gross can be several times larger than profit. That is why records matter. Without them, you cannot prove your costs, and you could end up paying tax on revenue rather than profit. For sales tax, which Whatnot generally collects and remits as a marketplace facilitator, see does Whatnot collect sales tax; ask your tax professional how any tax amounts included in reported figures should be handled.

Hobby, Personal Items or Business?

How your Whatnot income is taxed depends partly on what you are doing:

• Selling personal items at a loss. If you sell your own used belongings for less than you paid, there is generally no taxable gain. You may still receive a 1099-K, and you may need to show on your return why the amount is not taxable.
• Selling personal items at a gain. A collectible you bought years ago and sold for more than you paid can create a taxable capital gain, and long-term gains on collectibles can be taxed at different rates than other assets.
• Reselling as a business. If you buy inventory to sell for profit regularly, you are generally running a business. Profit is typically reported on Schedule C and is subject to self-employment tax as well as income tax.

The line between hobby and business depends on factors like how regularly you sell, whether you intend to profit and how you run the activity. A tax professional can help you decide which applies.

Common Deductions for Whatnot Sellers

If you are running a reselling business, these are commonly deductible expenses. Keep receipts and records for all of them.

• Cost of goods sold: what you paid for the items you sold.
• Whatnot fees: commission and processing. See Whatnot seller fees for how they are calculated.
• Shipping and packaging: mailers, boxes, toploaders, tape and labels, plus any shipping you paid yourself, such as on giveaways.
• Giveaway items: the cost of items given away as promotion.
• Promotion: Boost spend and other advertising.
• Equipment: lighting, phone stands, cameras, label printers and similar items used for the business.
• Other business costs: software, bookkeeping tools, supplies, and potentially a portion of phone and internet use. Home office and vehicle deductions have specific rules.

A simple system for tracking all of this is in our Whatnot bookkeeping guide.

Whatnot Tax Calculator: How to Estimate What You Owe

Whatnot does not offer an income tax calculator, but you can build a rough estimate yourself:

1. Calculate net profit: gross sales minus Whatnot fees, cost of goods sold and other business expenses.
2. Estimate self-employment tax: generally 15.3% applied to about 92.35% of net self-employment earnings, once net earnings are $400 or more.
3. Estimate income tax: apply your marginal federal rate to your profit, less deductions such as half of self-employment tax. Other deductions may reduce it further.
4. Add state income tax if your state has one.

Rough illustration: with $10,000 of net profit, self-employment tax would be about $1,413 (10,000 x 0.9235 x 0.153). If your marginal federal income tax rate were 12%, income tax on the profit after deducting half of self-employment tax would be roughly $1,115. That is around $2,500 before state tax and any other deductions or credits. Your actual figure could be quite different, so use tax software or a professional.

Quarterly Estimated Taxes

Because Whatnot does not withhold income tax from payouts, profitable sellers may need to make quarterly estimated tax payments to avoid underpayment penalties. A common habit is to move a set percentage of each payout into a separate savings account for taxes. Our guide to Whatnot payouts covers reconciling payouts with sales.

Tax Tips for Whatnot Sellers

• Track cost per item from the start. When you buy a lot or case, record what each item effectively cost.
• Keep a show log: sales, fees, giveaway costs and Boost spend for each show.
• Use a separate bank account for Whatnot payouts and business purchases.
• Reconcile your 1099-K to your own records before filing.
• Talk to a professional early, ideally before your first full year of selling, not after.

Records to Keep for Each Tax Year

• Purchase receipts or invoices for all inventory, including lots, cases and pallets.
• Whatnot sales and fee reports, downloaded from your seller tools where available.
• Payout records matched to your bank statements.
• Receipts for supplies, equipment, software and promotion.
• A note of giveaway items and their cost.
• Your 1099-K, if issued, and any state forms.

Selling on Whatnot Outside the US

The 1099-K is a US form. Sellers in other countries face their own reporting rules. In the UK, digital platforms report seller information to HMRC under international platform reporting rules, and in Canada platforms report to the CRA under similar rules. VAT and GST/HST obligations also apply above local thresholds. See our guides to selling on Whatnot in the UK and selling on Whatnot in Canada, and speak to a local accountant.

If you are treating Whatnot as a real business and want structured guidance on building it, the Marketplace SuperHeroes free workshop covers sourcing and scaling for beginners. It is independent of Whatnot, does not provide tax advice, and its organizers state results are not typical or guaranteed.

Bottom Line on Whatnot 1099s and Taxes

Whatnot issues 1099-K forms when you exceed the federal threshold of more than $20,000 and more than 200 transactions, or a lower state threshold, typically by January 31. But your tax obligation is based on profit, not on whether you get a form. Keep records, deduct legitimate costs and get professional advice.

Next, read Whatnot sales tax to understand what Whatnot collects from buyers, and set up your records with the Whatnot bookkeeping guide.