How to Use the Online Resale Income Tax Calculator
Selling on eBay, Poshmark, Mercari, or similar marketplaces creates two separate questions: will the platform report your sales to the IRS, and do you owe tax on the profit? This calculator addresses both. As of the 2025 tax year, marketplaces are required to send you (and the IRS) a Form 1099-K only if your gross sales exceed $20,000 and you have more than 200 transactions in a calendar year — Congress restored this original threshold after a lower $600 rule had been scheduled to take effect.
Importantly, the 1099-K threshold has nothing to do with whether your income is actually taxable. If you buy items and resell them for a profit — even occasionally, even without a 1099-K — that profit is taxable income you're required to report. On the other hand, selling your own used personal items for less than you paid isn't taxable (though you can't deduct the loss either), which is why this calculator asks for your cost basis to isolate the real profit.
This tool estimates your federal tax by multiplying your resale profit by the marginal tax bracket you select. It does not include self-employment tax, which may apply if your reselling activity is regular and profit-driven enough to count as a trade or business rather than a hobby, nor does it include any state income tax.
Frequently Asked Questions
Yes. The 1099-K threshold only determines whether the marketplace reports your sales to the IRS — it has no effect on whether the income is taxable. Any profit from selling items for more than you paid is taxable income regardless of whether you receive a form.
As of the 2025 tax year, Congress restored the original threshold: marketplaces must issue Form 1099-K only if you have over $20,000 in gross sales and more than 200 transactions in a calendar year. This reversed the lower $600 threshold that had been scheduled to take effect.
Generally no. Selling a personal item for less than you originally paid for it is not taxable income, though you also can't deduct the loss. This calculator assumes you're entering your net resale profit (sales minus cost basis), which should already reflect that.