Etsy Sellers: Tell Congress no unfair tax burdens for micro-entrepreneurs!
In 2021, the U.S. Congress passed a law that lowered the minimum tax reporting threshold for 1099-K forms from $20,000 and 200 transactions to just $600 and one transaction. While changes to the 1099-K threshold have been delayed, we still need your help advocating for permanent reform.
For many Etsy sellers, this means that they’ll 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.
We’re turning up the pressure on Congress to act before the next tax cycle and 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 members of Congress to support casual sellers and come up with a legislative fix?