Do you have to report eBay sales under $20,000?

What does the $20,000 threshold control?

It controls one thing: whether eBay must send a Form 1099-K to you and the IRS. eBay's 1099-K page lists the 2026 reporting threshold as gross payments exceeding $20,000 and more than 200 transactions. Both parts must be met.

Your duty to report does not depend on it. The IRS says: "Whether or not you receive a Form 1099-K, you must still report any income on your tax return." The July 2025 law that brought back the $20,000 test changed what platforms file. It did not change what sellers owe.

There is no dollar amount of card profit that is tax free. The master tax guide explains the one small figure people confuse with an exemption: $400 of net earnings is where self-employment tax starts.

What do $20,000, $600, $400 and $0 each mean?

Four numbers get mixed up, and only one of them is about owing tax. None of them is an amount you can sell tax free.

Is it profit or the whole sale that is taxed?

Profit. You report the gross sales, then subtract what the cards cost you, eBay's fees, shipping and your other business expenses. Tax applies to what is left.

Here is one eBay sale from a seller well under $20,000 for the year. No form is coming for it. The profit is still income.

The eBay sale adds $3,400 to gross receipts, and the deal adds $739.20 of profit. Proving the $2,175 is the hard part, and the cost basis guide for cash and trade buys covers the receipt that does it. Comped records the seller, date, item and price when you scan the card at the table, so the basis is on file before the card is listed.

Where do eBay sales go on the return?

It depends on what the selling is. The IRS sorts sellers into three groups, and each reports in a different place.

Most people who flip cards on eBay are in the first row. On Schedule C, sales go on line 1, refunds on line 2, the cost of cards sold on line 4, and fees on line 10. Shipping you paid is commonly listed in Part V, which totals to line 27b. The IRS names no line for it. Net earnings of $400 or more also carry self-employment tax of 15.3%. Which row you are in is its own question, covered in hobby or business.

Long-term gains on collectibles held as investments are taxed at up to 28%. Trading cards are treated as collectibles in practice.

How do I report eBay sales with no 1099-K, step by step?

Build the gross yourself from eBay's records, then fill the same lines a seller with a form fills. With no form there is no Box 1a to start from. The IRS tells sellers to use their books and records to report all gross receipts.

1. Decide which row of the table above you are in. The rest assumes Schedule C.
2. In Seller Hub, pull the year's sales, refunds and fees from eBay's reports. Use sale dates from January 1 to December 31.
3. Add sales from everywhere else: other platforms under their thresholds, card reader sales and show cash from your log.
4. Total the cost of the cards that sold this year. Cards still in the box are not a cost yet.
5. Enter gross on line 1, refunds on line 2, cost of goods from Part III on line 4, fees on line 10 and postage in Part V.
6. If net profit on line 31 is $400 or more, self-employment tax of 15.3% applies to the net earnings.
7. If you expect to owe $1,000 or more for the year, make estimated payments. The quarterly estimated tax guide has the dates.

The cost total in step 4 is yours alone. eBay never knew what you paid. If cost records are thin, the guide to card sales with no receipts explains what else counts. A simple sheet works too: the card inventory spreadsheet has a cost column per card, and the card show cash log covers step 3.

What does a full year under $20,000 look like?

It looks like any other Schedule C, with a gross you totaled yourself. This example uses round, made-up figures for a part-time seller with 160 eBay orders and a few shows.

No form covered a dollar of this, and $3,300 is taxable. It is above $400, so self-employment tax applies too. If a form had come, the 1099-K reconciliation calculator runs the same subtraction from Box 1a, and it has a field for sales that are on no form.

What if I only sold old cards from my own collection?

Then it is usually not a business, and a gain is still taxable. A card you owned for yourself and sold for more than it cost goes on Form 8949 and Schedule D. A card sold for less than it cost produces no tax and no deduction.

The cost is the problem with childhood cards. If the original cost is unknown, document what you can, because the IRS can assert a zero basis. A zero basis makes the whole sale price a gain.

A 1099-K can still arrive for personal cards sold at a loss. The IRS says to report that amount in the entry space at the top of Schedule 1. That zeroes out the gross, so it is not taxed. Hobby income has its own line on the same schedule, line 8j.

Can a 1099-K come when I am under $20,000?

Yes, in three cases. Some states set a lower amount: $600 in Massachusetts, for example, and more than $1,000 with 4 transactions in Illinois. eBay's page says it issues forms to sellers who meet "the IRS or state minimum reporting thresholds." The state-by-state threshold report lists each one with its source.

Second, eBay says a form goes to sellers whose transactions had any backup withholding applied. Third, eBay combines accounts that share a tax ID. Two accounts that pass $20,000 and 200 transactions together each get a form.

If a form does come, its Box 1a is gross. eBay says the amount is based on when it processed the funds, not when you received them. It is not reduced for credits, discounts, fees or refunds, and it excludes sales tax and canceled transactions. The 1099-K detailed report lists every transaction behind it: Seller Hub, Payments, Taxes, 1099-K details, Generate. The 1099-K guide for card sellers reads the form box by box.

What happens if I leave the sales off, or already did?

The income is under-reported, and the usual penalties apply if it is found. The accuracy-related penalty is 20% of the underpaid tax. Failure to pay adds 0.5% per month, up to 25%. If no return was filed at all, failure to file is 5% per month, up to 25%, per the IRS.

If a past return left the sales off, the fix is an amended return. The IRS says to file Form 1040-X when there is a change in your income, and tax software can file it electronically. Rebuild that year's gross from eBay's reports first.

Time matters too. The IRS says to keep records 3 years in the normal case and 6 years when income is under-reported by more than 25%. Keep sale and cost records at least that long.

What are the dates for 2026 sales?

The 2026 return is due April 15, 2027, form or no form. The dates before it are the ones a seller under the threshold tends to miss.

The count on the first row is covered in the year-end card inventory count.

How this looks in the Comped app

The Transaction screen is the Batman deal above: price, fees, shipping, what hit the bank, the cost basis with the traded card, and true profit. The Money tab totals realized profit for the year and exports it as a CSV. With a linked bank on Comped Pro, an eBay payout is marked as a card sale or matched to a sale already recorded.

Related guides

• The Card Vendor's Master Guide to Taxes: dealer, hobby and investor rules in one place.
• The 1099-K for card sellers in 2026: the thresholds on every platform.
• Do you have to pay taxes on selling sports cards?: the longer answer on what is owed.
• Quarterly estimated taxes for card sellers: paying through the year once profit is real.

FAQ

Do I owe tax if I never got a 1099?

Yes, if you made a profit. The IRS says you must report income whether or not you receive a Form 1099-K. The form is a copy of what eBay tells the IRS, not the source of the tax.

How much can I sell on eBay before I get a 1099?

For 2026, more than $20,000 in gross payments and more than 200 transactions. Some states set lower amounts, and any backup withholding triggers a form. The amount you can sell before owing tax on profit is $0.

Where do I report eBay income without a 1099-K?

On the same lines as income with a form. A business reports gross sales on Schedule C line 1. Hobby income goes on Schedule 1 line 8j. A personal card sold at a gain goes on Form 8949 and Schedule D. The form you did not get changes none of that.

Do I have to report eBay sales under $600?

Yes, if there is a profit. The $600 figure was a 1099-K reporting floor that the July 2025 law cancelled, and it was never an exemption. A personal item sold for less than you paid produces no taxable income.

Should I just stay under the threshold?

No. The threshold is a reporting rule, not a tax rule. Sales under it are reported the same way, on the same lines, as sales over it.

Can I use selling at a loss to owe nothing?

Only if it is true and you can show the cost. A business with real losses reports them on Schedule C. A loss on a personal card is not deductible, and a cost with no record behind it can be challenged.

Is selling my childhood collection taxable?

A gain is. If a card sells for more than it cost, the difference is taxable. If the original cost is unknown, document what you can, because the IRS can assert a zero basis.

Will they audit me?

Nobody can promise either way. With no 1099-K the IRS has less to match against, but payments, deposits and platform records still exist. Reporting the profit with records behind it is the position that holds up.

This is general information for card sellers, not tax or legal advice for your situation. Rules change and states differ; a CPA who knows your numbers wins every time.