Form 1099-K is certainly not a new form in annual income tax preparation. If you have any questions or concerns, contact us. Check it out, here! You will need to report your total revenue, expenses related to your Poshmark business, and your net income on this form. This is tax robbery!!! In my state (TN) and city, its 9.75%. For anything above $15, 20% goes to Poshmark, and you get your 80%. The IRS has delayed the new $600 1099-K reporting threshold for one year. Then deduct any expenses other than those already deducted by Poshmark. Select a reason for flagging the comment. All specifications are subject to change without notice. If you run a shop likes this, you won't be taxed on what i earn. Select a date range. "I'm a big-time seller. State and local sales tax are charged on items like used, boutique, and wholesale items that are bought and shipped to an address within the United States and are calculated based on different factors such as: Take note that taxes may vary depending on the final sale price. Home-based online auction seller business. So they are taking more than 20% for their work. Top editors give you the stories you want delivered right to your inbox each weekday. You might also qualify to deduct your home office expenses. However, items you sold higher than their original price when you purchased them are considered taxable as a capital gain that you should declare in the Schedule D IRS form. But I have sold a few item's from my closet, and after the item is sold, they show you what your net is from the sale. 1099 forms are crucial for Poshmark sellers because they determine how much they owe in taxes. I believe if you have and sell high quality item's than you can definitely make money. (This is my current understanding) In your case, you sold stuff in a non-business setting, therefore you report the sale and other disposition of capital asset on Schedule D and/or Form 8949. If you are purchasing items for resale and doing it on a regular basis, this would be considered a business which would require Schedule C for income and expenses and Schedule SE for self employment taxes. The transition period is intended to . to Poshmark & pay taxes on my sales. Since Poshmark won't give any tax advice at all, I am not sure if the taxes they pay cover anything that I would normally owe? See this IRS pub for help: