Etsy is well known and a major player in the handmade and vintage arena with a marketplace that offers curated collections and suggestions.
Merchants voice their concerns over Etsy 1099-K tax form errors
If you’re a US-based Etsy seller, then the marketplace is required to report your sales revenue via a 1099-K tax form. The news comes as Etsy sellers started pointing out their confusion claiming that there are discrepancies between the Etsy 1099-K tax form numbers and other Etsy reports in the marketplace’s community forum.
On Monday, a seller said that Etsy 1099-K tax form showed “$50 more” than what is displayed on their “CSVs match and Taxpayer ID sales amount on the website.” Two weeks ago saw another Etsy merchant flagging up the tax error. The merchant said that “the information contained under Taxpayer ID on the system and December is different.”
In Etsy’s how is the total on my 1099-k calculated? page, the marketplace say they’re required to handle US sellers’ or those who pay in USD currency sales tax.
“If you are located in the US or paid in USD, Etsy is required to report your total gross sales income from Etsy Payments on the 1099-K form without subtracting expenses, such as (not a complete list):fees, refunds, shipping costs [and ]sales tax collected by you.”
Etsy have closed the sellers’ thread on the tax confusion and stated that “these sorts of issues” will be dealt with via email only.
“If you’re experiencing discrepancies with your 1099, can you reach out to us directly over email and we’d be happy to review this with you right away. In the meantime, since these sorts of issues will need to be handled over email, I’m going to close up this report.”