Tax Pack for resellers: would you pay $29?

Sample summary (made-up numbers)

This is what one page of a Tax Pack summary could look like, for a made-up seller on three platforms. The seller, the sale counts, the prices, the sales tax rate and the refunds are invented. The fees are not: they come from the same code as our fee calculators, using each platform's published rates.

Sample: made-up numbers, not a real seller

How the sample was figured

• eBay: 640 made-up sales of a $28.00 item with $6.00 shipping charged, so $34.00 gross and $5.39 in fees on each sale, $0.37 of it charged on the $2.72 of 8% sales tax the buyer paid. 8 orders refunded in full. Fee rule used: 13.6% of the total (15.3% for books, movies and music) + $0.30 or $0.40 per order.
• Mercari: 180 made-up sales of a $30.00 item, no shipping charged, so $30.00 gross and $3.00 in fees on each sale. 3 orders refunded in full. Fee rule used: 10% of item price + buyer-paid shipping; no payment processing fee.
• Poshmark: 120 made-up sales of a $35.00 item, no shipping charged, so $35.00 gross and $7.00 in fees on each sale. No refunds. Fee rule used: $2.95 flat under $15; 20% at $15 and up.
• Gross sales are the item price plus the shipping the buyer paid, before fees and refunds. The 8% sales tax is made up, and it is not counted in gross sales.
• Labels: every label the seller bought is priced at the USPS Ground Advantage commercial price for a 12 oz package to zone 5 in USPS Notice 123, effective October 4, 2026: $8.24. That is USPS's temporary holiday price, in effect from Oct 4, 2026 until Jan 17, 2027. For simplicity the sample uses that one price all year; labels bought earlier in 2026 were priced differently. Labels bought through a platform can cost less. Poshmark buyers pay for Poshmark's prepaid label, so the seller bought none there.
• Refunds are the amounts given back to buyers. Any fee credits a platform returns on a refund are left out of this sample; eBay, for one, says a refund or cancellation may be eligible for fee credits. The real tool would read them from the report where it shows them.
• Left before item costs is gross sales minus platform fees, labels and refunds. It is not profit: what the seller paid for the items, supplies and other costs aren't in it.

The 1099-K note in the sample

The federal test is applied per platform: a payment app or online marketplace must send a 1099-K when your payments through it total over $20,000 in more than 200 transactions in a calendar year (IRS, Understanding your Form 1099-K). The made-up seller grossed $31,360.00 across three platforms, but only one platform passes the test on its own.

What the Tax Pack would note

• eBay: a 1099-K is required, so the Tax Pack would set its box 1a beside $21,760.00, box 3 beside 640 transactions, and boxes 5a to 5l beside each month's gross from the report, and flag any gap. Buyers also paid $1,740.80 in sales tax on these orders; that figure would sit beside box 1a in case it explains a gap.
• Mercari and Poshmark: no 1099-K is required under the federal test. If one arrives anyway, the same comparison.

Reading a 1099-K

• Box 1a is a gross figure. The Form 1099-K instructions define it as the year's total "without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, shipping amounts, or any other amounts." Box 3 is the number of payment transactions, not counting refunds, and boxes 5a to 5l split the gross by month. So a 1099-K can show more than you were paid out.
• No form doesn't mean nothing to report. The IRS says platforms "may send you a Form 1099-K with lower amounts and/or transactions," and: "Whether or not you receive a Form 1099-K, you must still report any income on your tax return."
• States can differ. Some states set lower thresholds. Virginia law, for example, has payment platforms report to the state, and to payees with a Virginia mailing address, using the Form 1099-MISC thresholds of Internal Revenue Code § 6041(a) in place of the federal 1099-K test (Va. Code § 58.1-356). Virginia Tax notes this can mean reporting to Virginia even where nothing was required for the IRS (Tax Bulletin 20-10). Ask Virginia Tax or a tax professional which dollar figure applies to 2026 payments.

More on the federal rule in our 1099-K guide for resellers. How your own figures go on a return is a question for a tax professional.

Would you pay $29 for it?

One click tells us. We count the yeses, and the count decides whether we build it.

Common questions