Key takeaways
Yes, Whatnot income is taxable. If you buy items to resell, you pay income tax plus 15.3% self-employment tax on your profit, not on your total sales.
Whatnot sends a Form 1099-K through Stripe by January 31 if you had more than $20,000 in sales and more than 200 transactions. Sellers in a few states, including Massachusetts, Montana, and Illinois, can get one at much lower amounts. No form doesn't mean no tax.
You don't collect sales tax on Whatnot. Whatnot charges US buyers sales tax at checkout and pays it to the state for you.
Your Whatnot annual Seller Statement is the best starting point for your return. It breaks out sales, tips, commissions, processing fees, and seller-paid shipping. The table below shows where each line goes on your taxes.
Inventory is the biggest write-off most sellers miss, and the rule surprises people: you deduct what the items you sold cost you, not everything you bought this year.
In our example, a card seller with $28,400 in Whatnot income owes about $1,284 in federal tax with good records. Without proof of what they paid for inventory, the bill jumps to about $6,048.
Whatnot has grown into one of the biggest places to buy and sell trading cards, sneakers, vintage clothing, and collectibles live. For a lot of sellers, it started as a way to clear out a collection and turned into real income.
The tax side is where things get confusing. Your 1099-K shows one number, your payouts show another, and your profit is a third. This guide walks through all three using Whatnot's own help center documents (last updated on October 14, 2026) and IRS guidance.
Do you have to pay taxes on Whatnot sales?
Yes. Money you make selling on Whatnot is taxable income, whether or not you get a tax form. What you owe depends on what you're selling, because the IRS treats these three situations differently:
Your situation | How it's taxed | Where it goes on your return |
|---|---|---|
You buy items to resell (flipping cards, sealed product, sneakers, thrift finds, box breaks) | Your profit is business income. You pay income tax and 15.3% self-employment tax on it | Schedule C and Schedule SE |
You're selling your own collection (cards or items you bought to keep, not to flip) | Only a gain is taxed, as a capital gain. A loss isn't taxed and isn't deductible | Form 8949 and Schedule D |
You sell now and then for fun, with no real profit motive | Hobby income. It's taxed, but you can't deduct hobby expenses | Schedule 1, line 8j |
Most people who go live on Whatnot regularly fall into the first row. Whatnot's own US tax guide says the same thing: most sellers report their Whatnot sales as business income (Whatnot Tax Guide - US).
A business can deduct its costs, so being a business is usually the better deal. You only pay tax on what's left after inventory, fees, shipping, and supplies.
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Will Whatnot send you a 1099-K?
Only if you cross a reporting threshold. For tax year 2026, Whatnot sends a Form 1099-K if you had more than $20,000 in gross sales and more than 200 transactions in the calendar year. The One Big Beautiful Bill Act made that the permanent federal threshold in 2025, replacing the $600 rule that kept getting delayed (IRS, IR-2025-107).
Here's how the Whatnot 1099-K works, based on Whatnot's 1099-K help page:
Who sends it: Whatnot, through Stripe. Look for an email from notifications@stripe.com with the subject "Your Whatnot Inc. 1099 tax form is ready."
When: By January 31. Your 2026 form should arrive by January 31, 2027.
Where to check if you'll get one: Seller Hub → Finances → Tax Documents on the web, or Seller Hub → Payouts → Tax Documents in the app. It will say "Eligible via Stripe," "Check PayPal," or "Not eligible."
If you cashed out only through PayPal: Whatnot won't send you a 1099-K. PayPal may, and it would combine your Whatnot payouts with any other PayPal or Venmo business payments.
If you have more than one Whatnot account: Accounts under the same Social Security number or EIN get one combined 1099-K.
If you have a single-member LLC: The form still goes to your SSN, unless your LLC elected to be taxed as a corporation. Either way, a regular single-member LLC reports Whatnot income on Schedule C, just like a sole proprietor.
If you never gave Whatnot your tax ID: Whatnot may have to hold back 24% of your payouts as backup withholding.
Some states send a 1099-K at much lower amounts
Even below $20,000, you can get a state 1099-K if you live in a state with its own lower threshold. Here's what these states require for tax year 2026:
State | 1099-K threshold for 2026 | Source |
|---|---|---|
Massachusetts | $600 | |
Montana | $600 | |
Illinois | More than $1,000 and 4 or more transactions | |
Vermont | $2,000 | |
Maryland | $2,000 (state law uses the federal 1099-NEC threshold, which rose from $600 to $2,000 for 2026) | |
Virginia | $2,000 (same federal 1099-NEC rule; Virginia's older guidance still says $600) |
In every other state, you'll only get a 1099-K if you cross the federal $20,000 and 200-transaction threshold.
Your 1099-K is not your profit
A 1099-K reports the gross amount paid to you before Whatnot's commission, processing fees, shipping costs, refunds, and what you paid for your inventory. Treat it as the starting line, not the number you're taxed on.
That's why you'll often see a 1099-K that looks far bigger than what landed in your bank account. You report the full amount as gross receipts on Schedule C, then subtract your costs on the same form. Make sure your Schedule C gross receipts are at least the 1099-K total, so the IRS's computer match doesn't flag your return.
No 1099-K? You still owe tax on your profit
Most Whatnot sellers never get a 1099-K, because $20,000 and 200 sales is a lot for a side business. That income is still taxable, and you report it the same way you would if you had the form.
Here's what to do if you didn't get a 1099-K:
Download your annual Seller Statement from Seller Hub. Every seller gets one, and it shows your sales, tips, and fees for the year.
Check the Tax Documents tab in Seller Hub. If it says "Check PayPal," look for a 1099-K in your PayPal account under Statements and Taxes.
Report your sales as gross receipts on Schedule C, then subtract your costs, just like you would with a 1099-K.
Keep your statement and receipts with your tax records in case the IRS ever asks how you got your numbers.
For more, see our guide on what to do if you don't receive a 1099.
Where each line of your Whatnot Seller Statement goes on your taxes
Every Whatnot seller gets a monthly statement, plus an annual statement each January for the year before. Find it under Seller Hub → Financials → Statements. Whatnot calls the Seller Statement, your Ledger, and your 1099-K the "source of truth" for tax purposes. Seller Analytics numbers are estimates and may not match (Whatnot Seller Statements).
Here's how a business seller would generally use each line on Schedule C:
Seller Statement line | What it is | On your taxes |
|---|---|---|
Gross sales | Item sales, after coupons | Income: gross receipts (Schedule C, line 1) |
Tips | Tips from buyers | Income. Tips are taxable business income |
Affiliate rewards, seller referral bonus, new seller cash match | Whatnot programs that pay you | Income: other income (Schedule C, line 6) |
Giveaway refund credit, other adjustments (income) | Credits and reimbursements | Usually income, unless it reimburses a cost you're also deducting |
Commission fees | Whatnot's cut of each sale | Deductible: commissions and fees |
Payment processing fees | 2.9% + $0.30 per order in the US | Deductible: commissions and fees |
Sales & use tax on fees and commissions | Tax some states charge on Whatnot's fees | Deductible, along with the fees |
Show boost and promote | Paid promotion inside Whatnot | Deductible: advertising |
Seller-paid shipping & handling | Free or discounted shipping you offered, plus giveaway shipping | Deductible: shipping or supplies |
Shipping surcharges and fees | Label adjustments charged back | Deductible |
Order refunds | Money returned to buyers | Reduces income (returns and allowances, line 2) |
Payouts | Money moved to your bank | Not income. It's your own money moving. Don't add payouts to your sales, or you'll double count |
What's not on the statement: what you paid for your inventory, packing supplies you bought elsewhere, grading fees, your phone, camera gear, and miles driven. Those come from your own records, and they're usually the biggest deductions you have.
All of those are deductible business expenses, but only if you can show what you spent. Keeper connects to your bank and card accounts and tracks both your income and your expenses in one place. It spots write-offs like inventory, packing supplies, and shipping automatically, so you don't have to dig through a year of receipts in April.
Do Whatnot sellers have to collect sales tax?
No, not on sales to US buyers. Whatnot charges sales tax at checkout and sends it to the right state, county, and city. In Whatnot's words, "Sellers inside and outside the U.S. have no responsibility to collect U.S. sales and use tax on any orders to U.S. buyers" (How tax is collected from purchases on Whatnot).
This works because of marketplace facilitator laws. Every state with a sales tax makes big marketplaces like Whatnot collect it for their sellers. The sales tax buyers pay is never your money, so it isn't your income.
Two things to know:
Whatnot charges sales tax on its fees in some states. That shows up as "Sales & use tax on fees and commissions" on your statement. It's a business expense.
Selling somewhere else too? Sales at card shows, in person, or on your own website aren't covered by Whatnot. You may need a seller's permit and to collect sales tax yourself on those. Whatnot's US tax guide also notes that some states can still ask marketplace sellers to register or file, so check your state's rules if you're selling a lot.
How much tax will you owe on Whatnot sales?
For a business seller, you pay two federal taxes on your profit:
Self-employment tax: 15.3% of 92.35% of your net profit. This is Social Security and Medicare. You owe it once your net self-employment profit is $400 or more.
Federal income tax at your regular bracket (10% to 37% for 2026), after your standard deduction and the 20% qualified business income deduction. Most states add their own income tax.
The fastest way to see your number is Keeper's 1099 tax calculator, which includes your state.
Let's see an example
This is a hypothetical seller built to show the math. It isn't a Keeper customer.
Sam has a full-time job paying $55,000 and runs Pokémon and sports card shows on Whatnot a few nights a week. Sam files single. Here's how much Sam made in 2026:
Amount | |
|---|---|
Income | |
Gross sales (Seller Statement) | $28,000 |
Tips | $400 |
Total income | $28,400 |
Whatnot fees and costs (Seller Statement) | |
Commission (8% of item sales) | −$2,240 |
Payment processing (2.9% of $32,000 in buyer totals + $0.30 × 1,400 orders) | −$1,348 |
Seller-paid and giveaway shipping | −$900 |
Show boost and promote | −$300 |
Inventory (Sam's own records) | |
Cards and sealed product bought in 2026 | $20,000 |
Minus inventory still unsold on Dec 31 | −$4,000 |
Cost of goods sold | −$16,000 |
Other expenses (Sam's own records) | |
Toploaders, sleeves, team bags, mailers, labels | −$700 |
Ring light and phone tripod | −$600 |
Mileage to card shows and the post office: 600 miles Jan–Jun at 72.5¢, 400 miles Jul–Dec at 76¢ | −$739 |
Net profit | $5,573 |
Sam's federal tax on that profit:
Self-employment tax: $5,573 × 92.35% × 15.3% ≈ $787
Extra federal income tax: about $497 (Sam stays in the 12% bracket after deducting half of SE tax and taking the 20% QBI deduction)
Total: about $1,284
Now imagine Sam kept no record of what the cards cost. Sam can still deduct the fees shown on the Seller Statement, but not the $16,000 in inventory or the other $2,039 in expenses. Profit becomes $23,612, and the federal bill becomes about $6,048. Sam's receipts were worth about $4,764 in tax.
Assumptions: 2026 federal rules, single filer, $16,100 standard deduction, no other income or deductions, Sam started the year with no inventory. State tax not included. Mileage uses the IRS business rate of 72.5¢ through June 30, 2026 and 76¢ from July 1, 2026.
Why receipts matter so much for Whatnot sellers
Card and collectibles sellers often run thin margins. A box that cost $120 might sell for $160 in singles, and fees take another $15 or so. If you can't prove the $120, the IRS can treat nearly the whole $160 as profit.
That's where Keeper helps. It connects to the bank and card accounts you buy inventory with, finds business purchases like product, supplies, and shipping automatically, and keeps them organized for tax time.
How much to set aside from each payout
A simple rule: set aside 25% to 30% of your profit, not your sales. If you have little other income, you'll likely need less. If you're in the 22% bracket or higher, aim for the top of that range.
Taking 25% of every payout overshoots badly for most resellers, because so much of each payout goes right back into inventory.
The inventory rule that surprises Whatnot sellers
You deduct inventory as cost of goods sold: what you paid for the items you actually sold this year. You don't deduct everything you bought.
Here's the formula, from Part III of Schedule C:
Inventory at the start of the year + inventory you bought this year − inventory left at the end of the year = cost of goods sold
This is the number one reason sellers ask "why do I owe taxes when I spent all my money on product?" If you spent $20,000 on cards and $4,000 of them are still in your boxes on December 31, only $16,000 counts this year. The other $4,000 counts next year, when those cards sell.
Some practical rules for card and collectibles sellers:
Count your inventory at year-end. A spreadsheet with what you paid for what's left is enough for most part-time sellers.
Grading fees and shipping to the grader add to what that card cost you. You deduct them when the graded card sells.
Sealed product you open: the box cost gets spread across the cards that came out of it. The most defensible way is to split it by each card's market value when you opened the box. If a $100 box held one card worth $60 and a pile of bulk worth $40, the hit carries $60 of the cost.
Box breaks: money buyers pay for spots is your sales income. What you paid for the boxes you broke is your cost of goods sold.
Giveaways: the item you give away and the shipping you pay on it are business expenses (advertising), not inventory you sold. Whatnot's statement already includes giveaway shipping in seller-paid shipping.
Cards you pull and keep for your own collection: you can't deduct those. Take their cost out of your inventory.
Small sellers generally don't need fancy inventory accounting. Under IRS rules for small businesses, you can treat inventory as materials and supplies and deduct it in the year you sell it or the year you pay for it, whichever is later (IRS Publication 334).
Selling your personal collection on Whatnot
If you're selling cards or collectibles you bought to keep, the rules are different. You're not running a business, so there's no self-employment tax. Instead:
Sold for more than you paid? The profit is a capital gain. If you owned the item for more than a year, collectibles like trading cards, coins, and art are taxed at a maximum of 28%, not the usual 0%, 15%, or 20% for stocks (IRS Topic 409). Held one year or less, it's taxed at your regular rate.
Sold for less than you paid? You don't owe tax, but you can't deduct the loss either. If you got a 1099-K for those sales, report them so the IRS sees they weren't profit. Whatnot's US tax guide describes two ways: a negative adjustment on Schedule 1, or reporting the sale on Form 8949.
Keep proof of what you paid. Old receipts, eBay purchase history, or screenshots of card show sales all help. Without proof, the IRS can treat the whole sale price as gain.
Where most people get this wrong: the 28% collectibles rate only applies to collectors. If you bought the cards to flip, they're inventory. Your profit is business income taxed at your regular rate plus 15.3% self-employment tax, and the collectibles rate doesn't apply. Many sellers do both. Keep your personal collection and your inventory clearly separate, so you can show which is which.
What can Whatnot sellers write off?
Any cost that's ordinary and necessary for your Whatnot business is deductible. That means common in your line of selling and helpful for it, not that you couldn't sell without it (IRS Publication 535). For most sellers, these are the big ones:
Whatnot fees
💸 Commission: 8% of the item price for most sellers in the US. Since September 21, 2026, the rate drops as your sales over each 4-week period grow. Sports and TCG sellers pay as little as 6.5% at $500,000+ per period (Whatnot seller fees). Coins & Money start at 4%.
💳 Payment processing: 2.9% + $0.30 per order in the US, charged on the buyer's full total, including shipping and tax
🧾 Sales tax Whatnot charges on its fees, in states that tax them
📣 Show boosts and promote spend
Inventory and selling costs
🃏 Cost of goods sold: cards, sealed product, sneakers, clothing, and anything else you resell
🏅 Grading and authentication fees (part of each graded item's cost)
🎁 Giveaway items and their shipping
📦 Shipping you pay, plus toploaders, sleeves, team bags, bubble mailers, boxes, tape, and labels
🖨️ A thermal label printer
Your stream setup
💡 Ring lights, tripods, phone mounts, microphones, and backdrops
🏠 The home office deduction if you use a space only for streaming, packing, or storing inventory
🗄️ Shelving, storage bins, card boxes, and a storage unit
Getting around
🚗 Mileage for sourcing trips, card shows, and the post office. For 2026, that's 72.5¢ a mile through June 30 and 76¢ from July 1 (IRS).
🎟️ Card show table fees and admission when you go to buy or sell
✈️ Travel to big shows, if the trip is mainly for business
Running the business
📊 Pricing and inventory apps, and accounting software
👩💼 Tax prep and bookkeeping fees
📢 Ads promoting your Whatnot shows on other platforms
See every deduction for resellers in our online seller write-offs list.
What tax write-offs can I claim?
Do you need to pay quarterly taxes on Whatnot income?
If you expect to owe $1,000 or more in federal tax for the year that isn't covered by paycheck withholding, the IRS expects you to pay during the year through quarterly estimated taxes. Skip them, and you may owe an underpayment penalty on top of your tax.
Due dates for tax year 2026:
Payment | Covers income from | Due |
|---|---|---|
Q1 | Jan 1 – Mar 31, 2026 | April 15, 2026 |
Q2 | Apr 1 – May 31, 2026 | June 15, 2026 |
Q3 | Jun 1 – Aug 31, 2026 | September 15, 2026 |
Q4 | Sep 1 – Dec 31, 2026 | January 15, 2027 |
If you also have a W-2 job, there's an easier option: raise the withholding on your paycheck with a new Form W-4 to cover your Whatnot taxes. Withholding counts as paid evenly through the year, even if you change it in December.
Use Keeper's quarterly tax calculator to see what to pay. Missed one? Here's what happens if you miss a quarterly payment.
Is your Whatnot shop a business or a hobby?
If you sell regularly and try to make a profit, it's almost certainly a business. The IRS looks at things like (IRS):
Whether you run it in a businesslike way, with records and separate accounts
How much time and effort you put in
Whether you depend on the income
Whether you change how you operate to make more money
Whether you've made a profit in similar work before
Losing money in your first year doesn't make it a hobby. Lots of new sellers spend more on inventory and gear than they bring in at first.
The label matters because hobby expenses aren't deductible at all. Hobby income still goes on your return in full. For a regular seller, that's a bad trade, so treating real selling as a business is usually both accurate and cheaper. More detail in our business vs. hobby guide.
How to file your Whatnot taxes, step by step
Download your annual Seller Statement from Seller Hub, and your 1099-K if you got one (from Stripe, PayPal, or both). If you got a 1099-K from both, don't count the same sales twice.
Add up your income: gross sales, tips, and any Whatnot bonuses or rewards. Make sure the total is at least the amount on your 1099-K.
Work out your cost of goods sold from your purchase records and a year-end inventory count.
List your other expenses: Whatnot fees from your statement, plus supplies, gear, mileage, and everything else from your own records.
Fill out Schedule C to get your net profit, then Schedule SE for self-employment tax. Whatnot sellers generally use business code 454110 (electronic shopping and mail-order houses).
Report personal collection sales separately on Form 8949 and Schedule D, if you sold any.
File by April 15, 2027. You can get an extension to October 15, but any tax you owe is still due in April.
New to this? Our step-by-step guide to filing self-employment taxes goes deeper.
Track and claim every eligible deduction with Keeper
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Try it freeFAQ
Yes, if you qualify. For 2026, Whatnot sends a Form 1099-K through Stripe by January 31, 2027 to US sellers with more than $20,000 in sales and more than 200 transactions. Sellers in a few states can get one at lower amounts, such as $600 in Massachusetts and Montana. Sellers who cashed out only through PayPal get any 1099-K from PayPal instead.
When you meet the 1099-K threshold, yes. Whatnot files the 1099-K with the IRS and, where required, your state. Whatnot also has your Social Security number or EIN, which it collects from every US seller. If you're under the threshold, Whatnot doesn't file a form, but the income is still taxable.
Yes. You owe tax on your Whatnot profit whether or not you get a form. Use your annual Seller Statement from Seller Hub to report your income. If your net profit from selling is $400 or more, you'll also owe self-employment tax.
Yes, to buyers. Whatnot adds sales tax at checkout for US buyers and pays it to the state. Sellers don't collect or file sales tax on Whatnot sales to US buyers. Some states also charge sales tax on Whatnot's seller fees, which you can deduct.
Yes. Whatnot's commission (8% for most US sellers), payment processing fees (2.9% + $0.30 per order), show boosts, and sales tax on fees are all deductible business expenses. They're listed on your annual Seller Statement.
Yes. Tips from buyers are part of your business income. They're on your Seller Statement as a separate line. The federal "no tax on tips" deduction that started in 2025 only covers occupations on a Treasury list, and it isn't clear that selling goods on a live stream counts. Don't assume Whatnot tips qualify without checking with a tax pro.
Yes, on your profit. If you buy cards to resell, your profit is business income, taxed at your regular rate plus 15.3% self-employment tax. If you're selling cards from your personal collection for more than you paid, the gain is a capital gain, taxed at up to 28% if you held the cards more than a year. Selling your collection at a loss isn't taxed.
Yes. Giveaways are a marketing cost. You can deduct what you paid for the giveaway item and any shipping you cover. Just don't also count that item in your cost of goods sold.
No. Buyers pay sales tax at checkout, and that's it. Taxes only come into play when you sell.
Shounak is the former Head of Operations at Keeper. His team of EAs, CPAs, and others tax professionals field the many complicated and fun tax questions posed by Keeper users. He enjoys cracking open large tomes to read up on rules and regulations. Prior to Keeper, Shounak ran operations for venture-backed logistics tech startups. He holds a BA in Political Science and South Asian Studies from UC Berkeley and an MBA in Finance from UNC Kenan-Flagler Business School. In his free time, he loves cooking and biking around San Francisco.
View full bio17 sources
- Whatnot Tax Guide - US · help.whatnot.com
- IRS issues FAQs on Form 1099-K threshold under the One, Big, Beautiful Bill; dollar limit reverts to $20,000 · irs.gov
- Whatnot's 1099-K help page · help.whatnot.com
- Massachusetts DOR · mass.gov
- Montana Employer and Information Agent Guide · revenue.mt.gov
- Pub-110, Forms Filing and Storage Requirements · tax.illinois.gov
- 1099-K Notices · tax.vermont.gov
- Laws · mgaleg.maryland.gov
- 20-10 · tax.virginia.gov
- Whatnot Seller Statements · help.whatnot.com
- How tax is collected from purchases on Whatnot · help.whatnot.com
- Publication 334 (2025), Tax Guide for Small Business · irs.gov
- Topic no. 409, Capital gains and losses · irs.gov
- Guide to business expense resources · irs.gov
- Whatnot seller fees · help.whatnot.com
- Standard mileage rates · irs.gov
- Here’s how to tell the difference between a hobby and a business for tax purposes · irs.gov
This article is for informational purposes only and isn’t tax, legal, or financial advice. Tax rules change and depend on your situation, so talk to a tax professional about yours.
