You may qualify to receive a 1099-K form if you meet certain sales thresholds. Your requirements may vary depending on the state that you are located in.
If you report Reverb sales activity on your personal tax return, you should fill out the W9 with your individual taxpayer name and ID. If your Reverb activity is part of a business, you should fill out the W9 with your business's legal entity name and EIN issued by the IRS.
Federal IRS Requirements
Reverb is required to issue a 1099-K form to you and the IRS if both of the following requirements are met:
- You have had $20,000 USD in sales through Reverb Payments during the calendar year.
- You performed 200 or more transactions during the calendar year.
If both of these thresholds are met, you will receive an email from Track1099 on behalf of Reverb.
It is important to fill out your information accurately and promptly, as failure to do so may require Reverb to withhold taxes from your future payouts to account for potential tax liabilities.
If you are located in Massachusetts or Vermont, you will receive a 1099-K form if:
- You have had $600 or more in sales through Reverb Payments during the calendar year.
If you also met the $20,000 in sales and 200 or more transactions (federal IRS thresholds), that information will also be reported to the IRS as well as the state tax authorities for Massachusetts and Vermont. Reverb will only send one 1099-K form per shop if you qualify on both State and IRS requirements.
What is a 1099-K?
The 1099-K form from Reverb reports the unadjusted gross sales you received through Reverb Payments during the last calendar year excluding only Marketplace Facilitator Taxes remitted by Reverb.
This means that Reverb fees and any refunded orders do not reduce your total sales for the year.
Reverb is required by US law to send out a 1099-K tax form.
How Do I Know If I Have Met The Threshold?
Reverb is not able to provide tax advice to our sellers, so we would recommend consulting a tax professional if you have any additional questions.