Do you pay taxes on Vinted sales? 1099-K thresholds by state (2026)

Updated October 19, 2026 · Guidance, not tax advice. Thresholds verified against the IRS and the sources listed below on that date; for your own return, talk to a tax professional.

Two separate questions get mixed up in every reseller forum. “Will Vinted send me (and the IRS) a Form 1099-K?” is about reporting, and the answer depends on thresholds. “Do I owe tax on what I sold?” is about income, and the answer depends on whether you made a profit, not on whether a form arrived. This guide takes them in order.

The federal 1099-K threshold: more than $20,000 and more than 200 transactions

Form 1099-K is filed by payment apps and online marketplaces (“third-party settlement organizations”) to report the gross payments they processed for you. For 2025 and later, the federal rule is the old one again: a platform must file when the gross amount of your reportable payments exceeds $20,000 and the number of transactions exceeds 200 in the calendar year. Both conditions have to be met.

The IRS explains the history in its 1099-K FAQs (IR-2025-107, October 23, 2025): the One Big Beautiful Bill Act, signed July 4, 2025, retroactively reinstated the threshold that applied before the American Rescue Plan Act, so the much-discussed $600 federal rule never took effect. The IRS page “Understanding your Form 1099-K” states the current test as “exceeds $20,000 in more than 200 transactions”.

Two practical points. The threshold is applied per platform, because each platform files its own form: $15,000 on Vinted and $15,000 on Poshmark means no federal form from either. And a platform can still send you a form below the threshold, the IRS notes, for example because a state requires it (next section) or because it chooses to.

States with a lower threshold

A number of states require 1099-K filing at a lower amount, which is why sellers in those states receive forms for a few hundred dollars of sales. The table lists the states with a lower threshold that we could verify. “State revenue agency” means we read the figure on the state tax department’s own site; “processor / third-party” means the figure comes from the 1099-K help pages of payment processors (PayPal, GOAT) or tax software (Wave) and we could not find a state page that states it. All other states and the federal rule apply as above.

Massachusetts’ guidance says its requirement “remains at $600 or more in gross payments, regardless of the number of transactions”; Vermont’s covers “payments that equal or exceed $600 per person”; Virginia’s applies when a payment settlement entity paid “$600 or more to you in the previous calendar year”. For Illinois, PayPal describes the test as over $1,000 and four or more separate transactions. State lists published by processors differ slightly from one another and are updated at different times (GOAT’s was updated January 15, 2026; Wave’s October 9, 2026), which is exactly why the table marks its source type. If you live in one of the processor-sourced states, check your state department of revenue before relying on the figure.

A 1099-K is not a tax bill

The form reports the gross amount the platform processed. The IRS says plainly that the gross payment amount is not adjusted for fees, credits, refunds, shipping, cash equivalents or discounts; those items “are not taxable income” and you can deduct them from the gross amount. It also says the opposite: “Whether or not you receive a Form 1099-K, you must still report any income on your tax return.” So the form changes nothing about what you owe. It only means the IRS knows the gross figure and will expect your return to account for it.

Personal items sold at a loss

Most casual Vinted sellers are clearing out their own closets, and used clothing almost always sells for less than it cost. The IRS treats that as the sale of a personal item at a loss: the loss cannot be deducted, but you also do not pay tax on the money. If the sale appears on a 1099-K, the IRS describes two ways to zero it out on your return: report the amount at the top of Schedule 1 (Form 1040) as income and again as an adjustment, or report the sale on Form 8949 (which flows to Schedule D) with the loss limited to zero. Either way you need to know what you originally paid, so a receipt or at least a reasonable record of the purchase price matters even for personal items.

When profit is taxable

If you sell a personal item for more than you paid, the IRS says the profit is taxable; the gain is the sale price minus your original cost, reported on Form 8949 and Schedule D. If you buy things in order to resell them, thrift-store flips included, you are not selling personal items anymore: the income is business income, generally reported on Schedule C with your cost of goods, shipping, fees and supplies as expenses, and it can be subject to self-employment tax. The IRS 1099-K pages make the baseline clear: if you receive payments for selling goods, you must report all income. Where the line between hobby, personal sale and business falls in your situation is a question for a tax professional, and it does not depend on whether a 1099-K arrives.

Record-keeping that makes this painless

• Per item: what you paid and when, what it sold for and when, which platform, what you paid for shipping and packaging, and any fees. This is the information both a loss calculation and a Schedule C need.
• Per platform and year: gross sales and the number of sales, so you can see where you stand against the federal rule and your state’s rule, and so you can reconcile the platform’s January form with your own numbers. Remember the platform’s gross can be higher than your item prices because it includes buyer-paid shipping and sales tax.
• Proof: purchase receipts, sale confirmations, label and postage records. Keep them with your tax records.
• If a form is wrong: contact the issuer named in the “Filer” box of the 1099-K, ask for a corrected form, keep copies, and file on time anyway; the IRS says not to wait.

How Thriftkeep helps

Thriftkeep is a Chrome extension that keeps these records locally in your browser. Its 1099-K meter shows gross payments and transaction count per platform for the year next to the federal rule, and if you pick your state in Settings it shows the lower state rule from the table above as well, with a below / near / reached status. A Schedule C-style year summary adds up gross sales, cost of goods sold, shipping, fees and net, and the yearly CSV export goes to Google Sheets or to your tax preparer. Two limits apply: Thriftkeep knows only what you enter (it reads nothing from Vinted or any other site), and it counts each sold item as one transaction, so a bundle of several items shows as more sales than the platform will count. Nothing is uploaded.

Get Thriftkeep free ↗

More guides

Sources

All retrieved October 19, 2026.

1. IRS: IRS issues FAQs on Form 1099-K threshold under the One Big Beautiful Bill; dollar limit reverts to $20,000 (IR-2025-107, October 23, 2025; Fact Sheet 2025-08)
2. IRS: Understanding your Form 1099-K — “exceeds $20,000 in more than 200 transactions”; report income whether or not you receive a form
3. IRS: What to do with Form 1099-K — gross amount not adjusted for fees, refunds or shipping; personal items sold at a loss or at a gain; incorrect forms
4. Massachusetts Department of Revenue: Form 1099 filing requirements — $600 or more regardless of the number of transactions
5. Vermont Department of Taxes: 1099-K information reporting — payments that equal or exceed $600
6. Virginia Tax: Did you receive a 1099-K? What you need to know — $600 or more
7. PayPal: IRS 1099-K reporting — state thresholds (Maryland, Illinois and others)
8. GOAT: Will I receive a 1099-K? — state thresholds (updated January 15, 2026)
9. Wave: Form 1099-K federal and state thresholds (updated October 9, 2026)

Vinted and Poshmark are trademarks of their respective owners. This guide is independent and not affiliated with any marketplace, payment processor or tax agency.