Poshmark 1099-K: thresholds, state limits, and why the total looks too high
Got a 1099-K from Poshmark — or expecting one? Here’s when Poshmark sends it, what the number on it means, and why it’s probably bigger than what you actually made. Based on Poshmark’s support articles.
When Poshmark sends a 1099-K
Federal threshold: Poshmark issues a 1099-K to sellers with $20,000 or more in gross sales and 200 transactions in the calendar year.
State thresholds: you also get one if you meet your state’s filing requirements — and some are much lower. Poshmark’s examples include:
- New Jersey: $1,000 or more in gross sales;
- DC, Massachusetts, Maryland, Mississippi, Virginia and Vermont: $600 or more.
So a small seller in one of these states can get a form even far below the federal threshold.
Why the total looks too high
The 1099-K reports gross sales. According to Poshmark, that figure includes:
- cancelled sales;
- refunded sales;
- fees, including Poshmark’s commission.
It doesn’t include shipping or the sales tax buyers paid.
In other words, it’s not what landed in your account. Your commission, refunds and cancellations are things to reconcile with your own records — Poshmark’s Sales Report is the place to start.
Selling used clothes at a loss
Poshmark points out that not all sales on a 1099-K are taxable income — for example, secondhand goods sold for less than you originally paid. If you’re clearing out your own closet, much of what’s reported may not be profit. Keep whatever records you have of what you paid.
Didn’t get one?
If you didn’t receive a 1099-K, Poshmark suggests downloading your Sales Report and talking to a tax advisor. Not meeting the threshold doesn’t mean your profits aren’t taxable — the IRS says income counts whether or not you get a form.
This explains Poshmark’s tax form, not your tax return. For what to report and deduct, ask a tax professional.
To see what Poshmark’s commission takes from each sale, use the Poshmark fee calculator.