1099-K Tax Calculator — Tax on PayPal, Venmo, eBay & Etsy

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1099-K Tax

Marketplace & reseller income

This income is from

Gross amount on 1099-K

Cost of goods + expenses ⓘ

Your federal income tax bracket

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Enter your 1099-K to estimate the tax

How the 1099-K Tax Calculator Works

Pick what the income is — business, hobby, or selling used personal items.
Enter your 1099-K total and your costs/expenses.
See your taxable profit and the income + self-employment tax you'll owe.

Do I Owe Tax on a 1099-K?

A Form 1099-K reports the gross payments you received through apps and marketplaces (PayPal, Venmo, Cash App, eBay, Etsy, StubHub, etc.). The form itself isn't a tax bill — you're taxed on your profit, not the gross. As thresholds dropped, far more casual sellers now receive one.

Business/side hustle: deduct your cost of goods and expenses; profit is subject to income tax plus 15.3% self-employment tax (above $400 net). Hobby: income is taxable but you generally can't deduct expenses. Used personal items: selling at a loss (e.g., a couch for less than you paid) isn't taxable — only gains are. Keep records to prove your basis. Estimate only; not tax advice.

1099-K FAQ

Is the whole 1099-K amount taxable? ▾

No. You're taxed on profit — gross minus your cost of goods and business expenses. Reselling a $1,000 item you bought for $1,000 produces no taxable income.

I just sold old personal stuff — do I owe tax? ▾

Selling used personal items at a loss is not taxable, but you may still receive a 1099-K. Report it correctly and keep records showing you sold for less than you paid.

What is self-employment tax? ▾

If your activity is a business, net profit over $400 owes 15.3% self-employment tax (Social Security + Medicare) on top of income tax. Half of it is deductible.