Hello, how can we help you?

Here's what you need to know:

• If you receive more than $20,000 in gross payments and have more than 200 transactions on Reverb during 2026, or meet an applicable state reporting threshold, we’ll reach out to collect your tax identification information. You can add this information to your account at any time before meeting a reporting threshold.
• This information is needed to issue you a Form 1099-K and will help you file your taxes for sales made in 2026.
• If Reverb requests your tax information and you do not provide it, your payouts may be temporarily placed on hold until you enter the required information
• After you’ve provided your tax information, we’ll reach out with any next steps.

Receiving a 1099-K doesn’t necessarily mean you’ll pay income tax on your Reverb sales. If you have questions about your taxable income, it’s best to work with a tax professional.

FAQs

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.

Your Form 1099-K from Reverb reports gross payments processed through Reverb Payments during the calendar year before deductions for fees or refunds. This amount is not your net payout or taxable profit. Gross payments include:

• Sales
• Shipping
• Payments for orders that were later refunded
• Refunds
• Selling fees
• Bump fees
• Credit card fees

Fees deducted from your payments and amounts refunded to buyers do not reduce the gross payments reported on Form 1099-K. A refund is not an additional sale. Use your transaction records to reconcile the reported amount with your net payouts and determine any adjustments needed for your income tax return.

Will I have to pay taxes on my Reverb sales?

Receiving a Form 1099-K does not necessarily mean you owe income tax on the reported amount. A gain on a personal item can be taxable. Selling a personal item for less than its cost generally does not create taxable income, and the personal loss is not deductible. Business sellers should use their records to determine taxable profit. Consult your tax advisor about your circumstances and what to report on your tax return.

Whether or not a taxpayer receives a Form 1099-K or other information return, the taxpayer is still responsible for accurately reporting all income. For more information, read the IRS's Form 1099-K FAQ.

What happens when I meet the sales threshold?

When you meet a reporting threshold, Reverb may request your tax information. If you do not provide the requested information, your payouts may be temporarily placed on hold until you enter it.

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

Meeting both the federal and state thresholds does not by itself result in duplicate forms for the same shop’s payments. Reverb reports payments to the IRS and applicable state tax authorities as required.

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

If Reverb requests your tax information and you do not provide it, your payouts may be temporarily placed on hold until you enter the required information. Federal backup withholding may also apply when required by law.

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

Your US tax status, rather than your location or payment currency alone, determines which tax documentation is required. US persons generally provide Form W-9, including US citizens living abroad. Foreign sellers may be exempt from Form 1099-K reporting when the applicable requirements are met and valid foreign-status documentation is on file. Foreign individuals generally use Form W-8BEN; foreign entities generally use Form W-8BEN-E. Contact 1099taxreporting@reverb.com for help with the appropriate documentation.

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

Provide the legal name and taxpayer identification number required by the Form W-9 instructions for your federal tax classification. A sole proprietor may generally provide a Social Security number or their own employer identification number (EIN). A single-member LLC disregarded for federal income tax purposes generally provides its owner’s name and taxpayer identification number. Corporations and partnerships generally provide their entity’s EIN

Why is Reverb sending me a 1099-K?

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

Will I need to provide my taxpayer information each year?

Once your tax information is accepted, you generally do not need to resubmit it annually. Update it if your legal name, taxpayer identification number, address, ownership, or tax classification changes, or if Reverb requests updated documentation. You can update your information on the Tax ID page in your Reverb account.

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 provide accurate tax information?

Missing or incorrect taxpayer information may require Reverb to apply federal backup withholding, generally at 24%, when applicable. Any federal tax withheld is reported on your tax form and may be claimed as a credit on your federal income tax return.

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?

You may receive separate Forms 1099-K for separate shops. Reporting eligibility is determined under applicable payee-level rules, including activity across accounts belonging to the same participating payee. Keep the forms and transaction records for all your shops when preparing your tax return.

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.

Additional resources

For 2026 payments, the deadline to provide sellers with Form 1099-K is February 1, 2027. If your form contains an incorrect amount or taxpayer identification number, contact 1099taxreporting@reverb.com for assistance. We’ve also compiled additional resources you might find useful:

• Guide to Information Returns Filed With California (FTB)
• Understanding your Form 1099-K (IRS)
• Instructions for Form 1099-K (IRS)
• Form 1099-K FAQs (IRS)
• IRS instructions for individual sellers (IRS)
• IRS business tax resources for sole proprietors, partnerships, S corporations, and C corporations (IRS)
• What online business owners should know about IRS Form 1099-K (TurboTax)