Etsy Sellers: Tell Congress no unfair tax burdens for micro-entrepreneurs!

We’re calling on the U.S. Congress to permanently increase the minimum tax reporting threshold for 1099-K forms.

In 2021, Congress passed a law that lowered the reporting threshold for 1099-K forms from $20,000 and 200 transactions to just $600 and one transaction. While this new threshold has yet to go into effect because of IRS delays, without a permanent solution, Etsy sellers could soon have to deal with an unnecessary burden when filing their taxes.

Under the lower threshold, Etsy sellers would receive a new tax form for the first time ever for selling as little as one item – like a painting or custom furniture piece – on our marketplace. 

Many makers spend significant resources and time creating items to sell on Etsy. However, 1099-K forms only take into account income made on online marketplaces and payment platforms, putting the burden on everyday sellers like you to show the amount of money they spent creating the items they sold to prove that they don’t owe any taxes.

The Senate has an opportunity to act now to permanently raise the 1099-K tax reporting threshold to a more reasonable number that targets the people who owe taxes instead of harassing the people who don’t.

Will you join us in asking your senators to support casual sellers and come up with a legislative fix?