Nothing spikes a reseller’s blood pressure like the words 1099-K. If you sell on Depop and you are not sure whether one is coming, or what to do if it is, take a breath. The rules are more forgiving for 2026 than they were a couple of years ago, and once you understand them, tax season stops being scary.
Who actually gets a 1099-K in 2026
For the 2026 tax year, the federal reporting threshold sits at over 20,000 dollars in sales and more than 200 transactions. Both have to be true for the platform to be required to send you a 1099-K. So a casual seller moving a few hundred dollars of closet clean-out generally will not get one from Depop.
Some states set lower thresholds of their own, so confirm your state’s rule before you assume you are in the clear.
The part everyone misses
Here is the trap: whether or not you receive a 1099-K has nothing to do with whether you owe tax. You owe income tax on your profit either way. The form is just paperwork that tells the IRS what you took in – it does not decide your tax bill. Selling as a real business? That income is reportable no matter how small the platform total.
How to make it painless
The good news is that resellers get to subtract a lot before profit is calculated. Your taxable number is what is left after costs, and those costs add up:
- What you paid for the items you sold.
- Shipping supplies and postage you cover.
- Platform and payment fees.
- Mileage to source and drop off packages.
Grab my free Schedule C Expense Tracker to keep every deductible cost in one place from day one.
Bottom line
For 2026 most casual Depop sellers will not get a 1099-K, but you still owe tax on real profit – so track your costs all year and the bill shrinks. This is not tax advice, so check your specifics with a pro.
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