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What are the US tax reporting requirements for 2022?

This article contains information about tax reporting for 2022. Please see this article for information about 2023 tax reporting requirements.

Quick answer

Depending on where you’re located and how much you’ve sold on Reverb, you may be required to receive a Form 1099-K from Reverb for your 2022 sales. Based on federal IRS thresholds, Reverb is required to issue a Form 1099-K to you and the IRS if both of the following are true:

  • You have had $20,000 USD in sales through Reverb Payments in 2022.
  • You had 200 or more transactions in 2022.

Some states have different requirements. You’ll receive a Form 1099-K if you met your state’s threshold in 2022:

View all individual state thresholds
  • Alabama: $1,500
  • Arkansas: $2,500
  • California: $600
  • District of Columbia: $600
  • Illinois: $1,000 and 4 transactions
  • Maryland: $600
  • Massachusetts: $600
  • Mississippi: $600
  • Missouri: $600
  • New Jersey: $1,000
  • Vermont: $600
  • Virginia: $600

If you meet both the federal IRS and a state-specific threshold, that info will be reported to both the IRS and the tax authorities for your state. In this instance, Reverb will only send one Form 1099-K per shop. Reverb is required by US law to send out a 1099-K tax form.

Important: As of January 1, 2023, the federal threshold for issuing a 1099-K has dropped to $600 with no minimum transaction level. You can learn more about 2023 US tax reporting requirements here.

How to enter your taxpayer information

  1. Log into your account and head to your Shop Settings.
  2. Go to the Tax ID tab.
  3. Select if you are an Individual or Business.
  4. Enter your Social Security Number (SSN) or Taxpayer Identification Number (TIN).
  5. Enter your contact information.
  6. Select Submit Tax Info Securely.

What happens after I provide my tax information to Reverb?

If you’re eligible to receive a Form 1099-K for the 2022 tax year, you can download it from the Tax ID page of your Reverb account by the end of January 2023. We’ll email you once your form is ready.

To download your Form 1099-K:
  1. Sign in on Reverb.com and go to Shop Settings.
  2. Go to the Tax ID tab.
  3. Scroll to Step 2, Request Form 1099-K.
  4. Select Download 1099-K. Your e-form will download as a PDF file. Don’t leave the page until the download is complete.

I’ve provided my tax info for 2022 and received my digital Form 1099-K, but the information is incorrect. How do I update it?

If you’ve provided your taxpayer information for 2022 and your information is incorrect on your digital Form 1099-K, you can update it from the “Tax ID” page of your Reverb account until March 14, 2023. As of March 15, 2023, we will no longer be able to accept changes to 2022 tax information. 

Here’s when you can expect your Form 1099-K to be updated:

If you update your 2022 taxpayer information:

Expect your downloadable Form 1099-K to be updated by:

January 1—February 13, 2023

February 28, 2023 *

February 14—March 14, 2023

March 27, 2023

* Date subject to change and communications will be sent to sellers if dates change.

FAQs & additional resources

While we can’t give you specific advice, we have compiled FAQs and additional info below to help you make sense of these reporting requirements. You can also reference the IRS website for the most up-to-date information.

What is a Form 1099-K?

A Form 1099-K reports payments you’ve received through a third party to the IRS. Since Reverb processes payments for US sellers through Reverb Payments, we’re required by law to send out a 1099-K tax form to sellers who meet federal or state thresholds.

The Form 1099-K from Reverb reports the unadjusted gross sales you received through Reverb Payments during the last calendar year. Unadjusted gross sales includes:

  • Sales
  • Shipping
  • Refunds
  • Selling fees
  • Bump fees
  • Credit card fees

Note that there may be other fees in addition to those listed above in Reverb’s 1099-K calculations. Reverb’s 1099-K amount excludes Marketplace Facilitator Taxes remitted by Reverb on behalf of sellers. Reverb fees and any refunded orders do not reduce your total sales for the year.

Note that you only pay taxes on your taxable income. Each Reverber will have to look at all their transactions both on and off platform in a given year to determine their taxable income, and should consult a tax advisor with any questions. Visit the IRS website for more info on understanding your form 1099-K and instructions for Form 1099-K.

What if I meet both the federal IRS and state threshold?

Reverb will only send one Form 1099-K per shop if you qualify on both state and IRS requirements. The information you provide will be reported to both the IRS and the state tax authorities.

What happened to the $600 reporting threshold for 2022?

In late 2022, the IRS announced a one-year delay of the $600 1099-K reporting threshold. This means that for the 2022 tax year, you’ll only receive a Form 1099-K if you exceeded the previous federal threshold of $20,000 in sales and 200 transactions or you live in a state with a lower reporting threshold.

Thank you for helping us advocate for change. We spent 2022 advocating for Congress to raise the $600 reporting threshold, which disproportionately burdens casual sellers. More than a thousand Reverb sellers shared their stories about the benefits of reselling used gear on Reverb and those stories resonated with policymakers.

While the $600 reporting threshold is currently in effect for 2023 sales, we’re hopeful that this delay is the first step toward a permanent solution. We’ll continue to advocate on behalf of the Reverb community and keep you updated along the way.

What happens if I don’t provide my tax information to Reverb?

If you hit the federal threshold and don’t provide this information, your payouts will be temporarily put on hold until you enter your tax information.

If I’m not a US-based seller, does this apply to me?

If you’re not a US seller, you won’t receive a 1099-K from Reverb. If you aren’t located in the US but you are paid in USD, we will need a Form W-8 BEN on file to remove you from the 1099-K obligation. Reach out to 1099taxreporting@reverb.com for more information.

What’s the difference between providing a Social Security number or an employer identification number?

If you’re a sole proprietor—meaning you did not make a sale through a business entity that is a corporation, partnership, or limited liability company—you will use your Social Security number for tax filing and reporting. Otherwise, you need a federal employer identification number (EIN) to pay taxes as a business. You can apply for an EIN from the IRS.

Why is Reverb sending me a 1099-K?

Reverb is required by law to report your payments to the IRS and/or your state via a Form 1099-K if you meet the federal or state thresholds outlined above.

Will I need to fill out a 1099-K each year?

No, once you submit your information and it’s verified by the IRS, you will not need to submit your information again. The only time you’ll need to update it is if your personal information—such as your address—changes. For changes to your information, head to your Tax ID page in your Reverb account or learn more.

How can I keep track of what I’ve paid for gear on Reverb?

You can view your past Reverb purchases in your buyer dashboard. Adding gear you’ve purchased to your Collection is another great way to keep track of what you own—including how much you originally paid—even when your gear was not purchased on Reverb.

Is my information secure?

Reverb uses industry standard security and encryption technologies to ensure your personal information stays secure and private. Specifically, Reverb uses a widely adopted security protocol called Transport Layer Security (TLS) and encrypts sensitive info using Advanced Encryption Standard (AES)-256.

What happens if I don’t fill out the Form 1099-K?

If you don’t fill out your information accurately and promptly, Reverb may be required to withhold taxes from your future payouts to account for potential tax liabilities.

Will I have to pay taxes on my Reverb sales?

Receiving a 1099-K from Reverb doesn't necessarily mean you'll have to pay income tax on what you've sold. We're required to issue 1099-Ks to every US seller who meets the federal or state threshold, but everyone's tax situation is different. For example, say a Reverber bought a guitar for $1,600 in 2019 and sold it for $1,000 in 2022. Reverb would still have to report the $1,000 payment on a 1099-K, but the seller would have no taxable income to report since the resale amount was less than the original purchase price.

The above scenario is just an example. Please talk to your tax advisor for your shop’s specific circumstances and clarification on what to report on your year end filing.

Does this impact both new and used gear sales?

The requirements listed above are the same whether the threshold is met selling new or used gear.

What if I have more than one Reverb shop?

Each shop, even if it is under the same Taxpayer Identification Number (TIN) —be it social security number or Employer Identification Number (EIN)— is issued an individual 1099-K for their shop’s activity. We’re unable to combine shop activity at this time.

What if I have additional questions?

If you have questions about Reverb’s policies, you can view our updated Terms of Use and Payment Terms. If you have additional questions, we recommend consulting a tax professional. 

We’ve also compiled a few additional resources you might find useful: 

Tax laws change frequently, and the information above is not tax or legal advice. You're responsible for any use of this information. Please consult a tax professional if you have any questions.
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