Yes, OfferUp does report sales to the IRS starting in 2022. Sellers who do more than $600 in sales will receive a 1099 from OfferUp when filing taxes in 2023. It’s a new tax rule that applies to all online sellers.
All selling platforms such as eBay, Mercari and Poshmark are required to report sales to the IRS starting in 2022. This includes OfferUp.
Is it necessary to report sales from OfferUp?
Yes, it is necessary to report sales from OfferUp to the IRS. Sellers who don’t could face an audit from the IRS, which could lead to a fine or even jail time.
Some OfferUp sales are made through local deals without online payments. OfferUp will not be able to track and report these sales on a 1099 form. However, sellers should still self-report those sales to the IRS on tax day.
Even though 2022 is the first year OfferUp is required to report sales to the IRS, sellers should’ve been self-reporting already.
How will OfferUp send your 1099 form?
OfferUp will likely send 1099 forms digitally. It could be in an email or a digital download in your account. However, sellers will likely have the ability to request their 1099 form in the mail as well.
What is a 1099 form?
A 1099 form is a tax form, or collection of tax forms, that documents payments received that aren’t from an individual’s employer. OfferUp will fill out the 1099 with the amount in sales you made on their platform and send it to you. OfferUp will also send the same form to the IRS.
The 1099 form is how the IRS indicates how much sellers need to pay in taxes before taking out tax deductions and exemptions.
How can you report your sales from OfferUp?
OfferUp sellers can find a tax advisor or use a tax service like TurboTax to get their taxes complete. TurboTax will help sellers prepare their tax forms and send them to the IRS. Sellers who receive 1099 forms can upload them into TurboTax so they can prepare the correct forms for the IRS.
Using a platform to help prepare your taxes can make preparing your taxes for the IRS easy if you’re an OfferUp seller.
Conclusion
The bottom line is OfferUp sellers will receive a 1099 form and need to pay taxes for their sales. This will start in 2023. If you sell on OfferUp, keep your receipts and track other business expenses you can write off.
