source: irs.gov

I didn't get a 1099-K from Etsy this year. Do I still owe taxes?

Updated 2026-07-13 · this page explains a rule, not your specific situation — confirm anything below with a tax professional. Sources linked throughout.

Short answer: probably yes, and the missing form doesn't change that. Here's exactly what happened and why the paperwork got quieter while the obligation didn't.

What actually changed

The federal 1099-K reporting threshold reverted to $20,000 in payments AND more than 200 transactions in a calendar year — the original, higher bar, restored under the "One Big Beautiful Bill" and confirmed in IRS guidance (IR-2025-107). For a few years the threshold had been dropping toward $600, which meant far more casual sellers received the form. That's now reversed.

What that means in practice

If your Etsy shop did under $20,000 in sales this year — which is most handmade shops — Etsy likely will not send you a 1099-K. No form arrives in your mailbox or Etsy account in January. It's tempting to read that as "the IRS doesn't know, so there's nothing to report." That's not how the underlying tax law works.

The rule that actually applies: net earnings from self-employment of $400 or more generally must be reported, independent of whether any 1099 form was issued. The 1099-K threshold only controls Etsy's reporting obligation to the IRS — it was never the threshold for whether you owe tax. See the IRS's own self-employment tax guidance.

So less paperwork arrives, but the math is still yours

This is the part worth sitting with: for most Etsy sellers, 2026 is a year with less official paperwork and the same underlying obligation. Nobody is handing you a summary number anymore. You still need your own gross sales, your fees, your cost of goods, and a Schedule C — you just have to assemble it yourself instead of starting from a form Etsy already filled in.

Where the numbers actually live

They're not gone — they're in the CSV exports Etsy lets you download yourself: the monthly Payment account statement (every fee, sale, and refund) and the Sold Order Items export (what sold, for how much). Etsy already has this data; a 1099-K was just one way of summarizing a slice of it.

Turn those CSVs into your actual numbers

Upload your statement — free fee breakdown instantly, no signup. When you're ready, a $79 one-time report maps the rest to your Schedule C.

Open CottageLedger

This page describes a general federal rule as of 2026-07-13. It is not tax advice and doesn't account for state rules, prior-year thresholds, or your specific situation — talk to a tax professional about your own filing.