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For Etsy sellers in the USA:

Etsy must send the IRS a 1099-K tax form. This form reports all sales that a seller made via Etsy to the tax authority.

Previously, Etsy only sent a 1099K if a seller received more than 200 payments via Etsy Payments or made over $20,000 a year on the platform.

From the beginning of 2022, Etsy is required to send a 1099-K tax form to all sellers made over $600.

This change will have an impact on people who are running an Etsy “hobby business”.

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