Form 1099-K for resellers: the $20,000, 200-transaction test for apps and marketplaces

How many sales before an app or marketplace must send one

The IRS release says no 1099-K is required unless the gross amount of payments "exceeds $20,000 and the number of transactions exceeds 200." The Form 1099-K instructions apply both parts "for the calendar year," so each year's payments are counted on their own. Below an average sale of $100, the dollar total decides. From $100 up, the 201st sale is the one that passes both parts: at exactly $100 both parts are passed on that sale, and above it the dollar part is passed sooner, so the transaction count decides.

Gross payments, fees and your records

The IRS release measures the threshold in the "gross amount" of payments. The Form 1099-K instructions (box 1a) define it as the total for the calendar year "without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, shipping amounts, or any other amounts." So the gross figure is counted before fees and before refunds are taken off. On a $25.00 sale, the platform fees alone range from $1.28 to $5.55 across the platforms below.

A seller's own records of sales, fees and costs are what connect a gross figure to a profit figure. The IRS covers this on its Recordkeeping page for small businesses and the self-employed. To see the fee side of a sale, try the fee calculators or where an item nets the most.

Other 2026 IRS figures for resellers

These are separate from the 1099-K. Each comes from an IRS publication, and each has conditions not shown here.

• 1099-NEC and 1099-MISC are forms a business files for certain payments it makes, such as to an independent contractor who packs orders, or for rent. The 1099-K is the form a platform or card processor sends to sellers. The $2,000 threshold will be adjusted for inflation from 2027 (Publication 1099).
• Mileage: 100 business miles come to $72.50 at the January-June rate and $76.00 at the July-December rate, against $70.00 at the 2025 rate. Miles before Jul 1 stay at 72.5 cents, so the two halves of 2026 are figured separately (Announcement 2026-11).
• QBI minimum: with $1,500 of QBI from a business you materially participate in and no other limit applying, 20% is $300.00, and the minimum raises the deduction to $400.00. For tax years beginning after 2025, the IRS says the deduction is the greater of the regular amount (after its taxable-income limit) and the minimum deduction (IRS QBI page). The floor matters when the regular deduction comes to less than $400, for example with $1,000 to $1,999 of QBI when no other limit applies. Both the $400 and the $1,000 will be adjusted for inflation after 2026 (Rev. Proc. 2025-32).

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