Update: On November21, 2023,the IRS announced a delay of the $600 reporting threshold for the Form 1099-K. With the delay, only sellers that exceed $20,000 in gross sales and 200 transactions will receive a Form 1099-K for activity conducted in 2023. The IRS is also planning for a threshold of $5,000 for tax year 2024. For more information related to the delay, please seeIRS Notice 2023-10andIRS Announcement.
Now, beginning January 1, 2023, the IRS Form 1099-K requires all businesses that process payments (including StockX) to file a 1099-K for all Sellers in the US with more than $600 in gross sales during a calendar year. In order to generate a complete Form 1099 as required by state and federal tax laws, Sellers will need to input their TIN (Taxpayer Identification Number) into their payout portal once they meet or exceed the $600 threshold. Your TIN is typically either your Social Security Number (SSN) or Employer Identification Number (EIN) for businesses. If you are a Seller in the US and have reached the $600 threshold in 2022, you will need to input your TIN into your Hyperwallet payout portal by following these steps:
- Log into your StockX account
- Go to your Account Settings
- Under the Payout Info section, click Edit.
- You will be directed to your payout portal in a new tab, powered by Hyperwallet .
- Follow the prompts within your payout portal.
Please note that your personal information in your payout portal must match your tax records. You can view and edit your personal details in the Settings tab within your payout portal.
To ensure that a valid TIN is collected from all eligible Sellers, TIN verification is mandatory, and will impact certain payout functionality within your payout portal.
If you meet these reporting requirements, you will receive a 1099 by email at the beginning of each year. The same information will be sent to the IRS and state tax agencies where applicable. You can find answers to some common questions below. Keep in mind, these answers are for information purposes only. As StockX cannot provide tax advice, please consult your tax advisor if you have questions about your taxes.
What do I do if I fail my TIN verification?
If you fail your TIN verification, you will need to return to your Hyperwallet account and update your personal information, ensuring it is identical to your IRS tax records. Once you have updated your information, please remove and re-enter your TIN to restart the verification process. Keep in mind, entries for these fields are case sensitive. Will I receive a Form 1099-K with respect to items that I sell on StockX?
The IRS and some state taxing authorities may require StockX to report the amounts you receive for selling on StockX. StockX is generally required to file a Form 1099-K report with the IRS if the gross amount of your transactions on our marketplace is $600 or more in a calendar year. Many states may also require StockX to report when you have made at least $600 in transactions on our marketplace, although some states may require reporting based on different thresholds.Once you have completed your TIN verification, a PDF version of your 1099-K form will be available for access within your StockX account by January 31st of the following year. For more information about the Form-1099-K, please refer to https://www.irs.gov/businesses/understanding-your-form-1099-k. What information will I be required to provide to StockX?
In accordance with applicable laws, StockX has outsourced the collection of the required taxpayer information to support the 1099 requirements to our payout management provider Hyperwallet (a PayPal company). Tax Identification Numbers (TIN) include a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) if you are selling as an individual, or an Employer Identification Number (EIN) if you are a legal entity. To avoid issues with processing, please ensure that your legal name matches the name that you use for tax purposes, and that all fields are entered accurately. StockX will never ask you to provide this information over the phone or in an email. If you reach $600 in gross sales on StockX, but fail to provide your taxpayer information, you will not be eligible to receive payment upon completion of sales until you provide your taxpayer information. For more information about the Form-1099-K, please refer to https://www.irs.gov/businesses/understanding-your-form-1099-k. How will my information be handled?
Once you login and submit your taxpayer information on our secure payout management platform powered by Hyperwallet (a PayPal company), your information will be submitted to the IRS for verification. To avoid issues with processing, please ensure that your legal name matches the name that you use for tax purposes, and that all fields are entered accurately. StockX will never ask you to provide this information over the phone or in an email. Hyperwallet will maintain your taxpayer information in a secure database. Hyperwallet will provide you with a copy of the Form 1099-K by January 31 of the following year. Many states may also require StockX to report when you have made at least $600 in transactions on our marketplace, although some states may require reporting based on different thresholds. When required, StockX will generally provide you with a copy of any state forms. When will I receive a copy of the 1099-K?
StockX will generally provide you with a copy of the form by January 31 of the following year after your gross sales amount reached the applicable $600 threshold. If you do not reach the threshold of $600 in any year, you will not receive a Form 1099-K from StockX. Reporting requirements and timing for filing applicable forms may differ in some states. For any questions about tax reporting and filing, please consult your tax adviser. For more information about the Form-1099-K, please refer tohttps://www.irs.gov/businesses/understanding-your-form-1099-k. How will I know if I reached the $600 threshold for the Form 1099-K?
StockX will provide you with a transaction amount for each sale via the sale confirmation transactional email. You may also see a history of your sold transactions in your payout portal. Additionally, if you reach the $600 threshold, you will be presented with a pop-up in your payout portal prompting you to input your taxpayer information. If you reach the $600 threshold, but fail to input your taxpayer information, your payouts will be held until you complete this step. For more information about the Form-1099-K, please refer tohttps://www.irs.gov/businesses/understanding-your-form-1099-k. How will StockX calculate the gross amount of my transactions on our marketplace?
StockX is generally required to include the gross amount of all reportable transactions that you made during the calendar year. The gross amount includes the total payout amount of each sale you have made on StockX. For more information about the Form-1099-K, please refer tohttps://www.irs.gov/businesses/understanding-your-form-1099-k. What if I have more than one account with StockX?
If you have multiple accounts with StockX, each account has a unique identifier, therefore you will be requested to submit your taxpayer information via your Hyperwallet payout portal for each account. However, you will receive only one Form 1099-K per Tax Identification Number (TIN). For more information about the Form-1099-K, please refer tohttps://www.irs.gov/businesses/understanding-your-form-1099-k. I am not a U.S. person. Am I subject to these requirements?
Earnings for customers in the US are subject to a Form 1099-K. If you believe you should not be taxed by the US government and have documentation to support the fact, then changes to your account will have to be made. I am under the age of 18. Am I subject to these requirements?
Per our Terms and Conditions, StockX does not allow minors to create a payout account under their name. The minor’s parent or legal guardian must set up payout information, therefore the parent or legal guardian is subject to these 1099 requirements.
