Form 1099-K and Tax Reporting

If your total gross sales on Flip It Exchange exceeded the federal or state reporting threshold in the previous calendar year, you may receive a Form 1099-K. This form provides a summary of your transactions and can help you report your income for tax purposes.

What Is Form 1099-K?

Form 1099-K is an IRS informational form that summarizes gross payment transactions processed through online marketplaces or third-party payment services like Stripe. It helps you report your income for tax purposes.

Important: Form 1099-K is an informational return only. Receiving this form does not necessarily mean you owe taxes on the amounts reported. You should use this form along with your own records to determine your actual taxable income.

For more details, see IRS.gov: Understanding Your Form 1099-K.

Who Will Get Form 1099-K?

You will receive a Form 1099-K if your total gross sales met certain thresholds in the previous calendar year:

Federal Threshold

For the 2024 tax year and beyond, the federal reporting threshold is:

• Gross sales exceeding $5,000 in a calendar year (regardless of transaction count)

State Thresholds

Some states have lower reporting thresholds than the federal government. You may receive a Form 1099-K even if your total gross sales are less than the federal threshold. States with lower thresholds include:

• Vermont: $600 or more in gross sales (no minimum transaction count)
• Virginia: $600 or more in gross sales (no minimum transaction count)
• Massachusetts: $600 or more in gross sales (no minimum transaction count)
• Maryland: $600 or more in gross sales (no minimum transaction count)
• Illinois: $600 or more in gross sales AND 3 or more transactions
• Other states: Thresholds may change annually; check your state's requirements

How Will I Get Form 1099-K?

Your Form 1099-K will be made available electronically through your Stripe Express account by January 31 for the previous calendar year.

To access your Form 1099-K:

1. You'll receive an email from Stripe with instructions to access your Stripe Express account
2. Log in to your Stripe Express account using the secure link provided
3. Navigate to the "Tax Documents" section
4. Download or print your Form 1099-K

If you haven't received your form by the end of February, please contact us via the Contact page.

What Address Will Form 1099-K Use?

Form 1099-K will be associated with the most recent address you provided through the Flip It Exchange taxpayer notification system. We periodically send notifications throughout the year to collect your Social Security Number and current address.

To ensure your tax documents are sent to the correct address:

• Keep your profile information up to date in your account settings
• Respond promptly to any requests from Stripe to verify your address
• Update your address immediately if you move

Can I Have Form 1099-K Emailed to Me?

Form 1099-K is provided electronically through your Stripe Express account. You can download and print the form from your account. Paper copies are not automatically mailed unless required by specific state regulations.

Will My Local Pickup Sales Be Documented on Form 1099-K?

No. Only sales processed through Stripe payment processing are included in Form 1099-K. This typically includes:

• Shipped items where payment was processed through the platform
• In-app transactions where the buyer paid using Stripe

Local pickup sales where payment was arranged outside the platform (cash, Venmo, etc.) are not reported on Form 1099-K.

For guidance on reporting cash sales or transactions outside the platform, please consult a qualified tax advisor.

What Do I Do With Form 1099-K?

Form 1099-K shows the gross amount and number of transactions from your Flip It Exchange sales for the year. Use this form, along with your other records, to determine your taxable income.

Important considerations:

• The gross amount on Form 1099-K may not match your actual profit or taxable income
• You may be able to deduct expenses such as the original cost of items, shipping costs, platform fees, and other business expenses
• Personal items sold at a loss (for less than you paid) are generally not taxable
• Items sold for profit may be subject to income tax or capital gains tax

To learn more, see IRS.gov: What to Do With Form 1099-K.

Why Doesn't My Gross Amount Match My Actual Earnings?

The gross amount on Form 1099-K includes all buyer payments made to you before any adjustments. It does not reflect:

• Platform fees (4–5% for items listed below $500, 3–3.5% for items listed at $500 or above — added on top of the listing price and paid by the buyer)
• Donations directed to organizations (the minimum 10% split)
• Refunds or returns
• Discounts or promotions
• Shipping costs paid by buyers
• Other deductions or adjustments

Additionally, the gross amount is reported based on when funds were processed by Stripe, not necessarily when you received them in your bank account.

I Didn't Meet the Payment Threshold. Why Did I Get a Form 1099-K?

Even if you didn't reach the federal threshold, your state may have a lower reporting threshold. You will receive a Form 1099-K if you meet either the federal or state threshold.

Additionally, if you had any sales in previous years that weren't reported, they may be included in the current year's form.

You are responsible for determining whether you need to file taxes based on your local jurisdiction's requirements.

I Lost My Form 1099-K. How Do I Get a New One?

To request a replacement Form 1099-K:

1. Log in to your Stripe Express account
2. Navigate to the "Tax Documents" section
3. Download a copy of your form

If you're unable to access your Stripe Express account or need assistance, please contact us via the Contact page.

Important Tax Disclaimer