1099-k for etsy hobby sellers

Did You Get a Form 1099-K and Aren’t Self-Employed or a Small Business? — Photo by RDNE Stock project on Pexels

Small Business Taxes? Etsy Hobbyists Could Hide Oversight

Yes, Etsy hobbyists must file a 1099-K when sales exceed the IRS thresholds, and failure to do so can result in penalties and back-tax liabilities. In 2024, 72% of e-commerce hobbyists who qualified for a 1099-K failed to report the income, resulting in an average back-tax liability of $3,200