Facebook 1099-K
If you sell products through Facebook Marketplace, Facebook Shops, or receive payments via Meta Pay, you may need to report your income for tax purposes using a 1099-K form. Understanding how to obtain and use this document correctly is essential for accurate tax filing and IRS compliance. Here’s what you need to know about the Facebook 1099-K.
What Is a 1099-K?
The 1099-K is an IRS tax form that reports payment transactions processed through third-party networks. Unlike a 1099-NEC, which reports direct payments from companies, the 1099-K is issued when payments are processed through platforms like Facebook’s payment system.
For Facebook sellers, this means that if your transactions meet the reporting threshold, Meta (Facebook’s parent company) will issue a 1099-K to both you and the IRS.
Who Receives a 1099-K from Facebook?
You will receive a 1099-K from Facebook if:
- Your gross sales exceed $20,000 AND
- You have more than 200 transactions in a calendar year.
However, starting in 2024 (for tax year 2023), the IRS is lowering the reporting threshold to $600 with no transaction limit. This means that more Facebook sellers will receive a 1099-K moving forward.
How to Get Your 1099-K from Facebook
Facebook typically issues 1099 forms by January 31st each year. Here’s how you can access your 1099-K:
- Check Your Email – Facebook will send a notification if your 1099-K is available, with a link to download it.
- Log in to Facebook Business Manager – Navigate to Commerce Manager > Payouts > Tax Documents to access your tax forms.
- Verify Your Payment Provider – If you receive payments through PayPal or another third-party processor, you may receive your 1099-K from them instead of Facebook.
- Request a Copy – If you haven’t received it by early February, contact Facebook Support.
How to Use Your 1099-K for Taxes
Your 1099-K reports gross sales, meaning it includes all payments received before deductions like Facebook fees, refunds, and shipping costs. When filing taxes:
- Report your total sales income on Schedule C (Form 1040).
- Deduct expenses such as Facebook seller fees, advertising costs, shipping expenses, and product costs.
- Consider estimated tax payments if you owe self-employment taxes.
What If You Don’t Receive a 1099-K?
If you earned less than the threshold, you won’t receive a 1099-K, but you are still required to report your earnings. Use your Facebook sales reports, bank statements, and transaction summaries to file your taxes accurately.
Final Thoughts
If you sell on Facebook, understanding how to obtain and use your 1099-K is essential for smooth tax filing. Keep detailed records of your sales and expenses throughout the year to ensure accuracy. If you’re uncertain about your tax obligations, consult a tax professional for guidance.