eBay and Poshmark resellers: track your flips and your 2026 taxes
Connect your bank via Plaid to categorize sales, fees and sourcing costs, estimate quarterly taxes, and log business trips to thrift and estate sales with start/stop in the app.
Where resellers typically get paid
W-2 or 1099?
Reselling for profit is self-employment: you report it on Schedule C and pay self-employment tax on net profit. Selling your own used personal items for less than you paid is different: there is generally no taxable gain, and the loss is not deductible.
1099-K only above $20,000 and 200 sales
Marketplaces such as eBay, Poshmark and Mercari send a 1099-K only when you exceed both $20,000 in gross payments and 200 transactions. Business income is taxable even without a form.
Keep your cost basis
What you paid for each item, plus platform fees and shipping, reduces taxable profit. Keep sourcing receipts so a 1099-K's gross figure is not mistaken for profit.
Sourcing trips count
Driving to thrift stores, estate sales and the post office for business can be deducted at 72.5 cents per mile (Jan-Jun 2026) or 76 cents (Jul-Dec 2026) if you keep a mileage log.
Save for retirement on side profit
Even a side reselling business can fund a SEP IRA or Solo 401(k). A Roth IRA allows $7,500 for 2026 ($8,600 at 50+) within income limits.
Reseller questions, answered
Do I owe taxes selling my own clothes on Poshmark?+
Selling personal items for less than you originally paid is generally not taxable gain (and the loss is not deductible), though you may still receive a 1099-K. Items sold at a gain, or items bought to resell, are taxable.
Will eBay send me a 1099-K for 2026?+
Only if you pass both $20,000 in gross payments and 200 transactions in the calendar year, after the threshold was restored to its pre-2021 level.
Do resellers pay self-employment tax?+
Yes, if reselling is a business and net self-employment earnings are $400 or more: 15.3% on 92.35% of net profit, with half of it deductible in figuring AGI.
Do I need to pay quarterly taxes on reselling income?+
If you expect to owe $1,000 or more for 2026 after withholding, make estimated payments by Apr 15, Jun 15, Sep 15, 2026 and Jan 15, 2027, or raise withholding at a W-2 job.
More guides for resellers
Gigaverse is built for every kind of independent worker
Free calculators for resellers
Ready to keep more of what you earn?
Free to open Auto-save Portable IRA
Free · Takes 10 seconds · First 1,000 in line get launch perks
On Android? Get the app on Google PlayGigaverse is not a bank. Brokerage services are provided through a FINRA/SIPC-member broker-dealer. Tax outcomes depend on your individual circumstances; Gigaverse does not guarantee any specific savings.