This article will provide an overview of US tax information, including our tax reporting obligations to you and the IRS.
It will also provide more details on what to expect when receiving your 1099-K form from Stripe, the company that powers Depop Payments. We'll run through how to update your taxpayer information and what happens after your 1099-K form is sent.
Please note that tax laws change frequently, and the information below is not tax or legal advice. You're responsible for any use of this information. Please consult a tax professional if you have any questions.
General Information
What is a Form 1099-K?
A Form 1099-K reports payments you’ve received through a third party to the IRS. Since Depop processes payments for sellers through Depop Payments, we’re required by law to send out a 1099-K tax form to sellers who meet federal or state thresholds.
The Form 1099-K from Depop reports the unadjusted gross sales you received through Depop Payments during the last calendar year. Unadjusted gross sales includes:
- Sales
- Shipping
- Refunds
- Selling fees
- Credit card fees
Note that there may be other fees in addition to those listed above in Depop’s 1099-K calculations. Depop’s 1099-K amount excludes sales tax remitted by Depop on behalf of sellers. Depop fees and any refunded orders do not reduce your total sales for the year.
You only pay taxes on your taxable income. For example, say a Depop seller bought an item for $1,600 in 2019 and sold it for $1,000 in 2022. Depop would still have to report the $1,000 payment on a 1099-K, but the seller would have no taxable income to report since the resale amount was less than the original purchase price. Each Depop seller will have to look at all their transactions both on and off platform in a given year to determine their taxable income, and should consult a tax advisor with any questions.
Visit the IRS website for more info on understanding your form 1099-K and instructions.
What do I need to provide?
We may ask you for tax identification information—like a Social Security Number or Tax ID—if you reach a certain threshold of sales via Depop, and we may block future payouts until you've provided these details. You can send us your details in-app, where they'll be securely stored by Stripe and only used for the purposes of tax reporting.
Why do I need to provide tax information to Depop?
This is a requirement by law, introduced in the American Rescue Plan Act of 2021. Marketplaces like Depop are required to collect tax identification info from sellers who gross $5,000 in sales in a calendar year. This information is needed to ensure we meet our obligation to file a Form 1099-K with the IRS and help you file your taxes.
What to expect when receiving your 1099k form
Eligible sellers who earned over the $5,000 federal threshold and/or their state tax threshold will receive an email from Stripe. Emails will be sent out in phases starting in November.
The subject line is “Get your depop.com 2024 tax forms faster by enabling e-delivery”.
Starting in November: Stripe will email you instructions on how to set up a Stripe Express account. You’ll need to create an account to access and download your 1099 tax form.
By December 31, 2024: Confirm your tax information (e.g., name, address, and SSN or EIN) is correct via Stripe Express.
By January 31, 2025:
- Your 1099 tax form will be available to download via Stripe Express if you agree to paperless delivery.
- Your 1099 tax form will be mailed to you, if you have requested it. Please allow up to 10 business days for mail delivery.
- Depop will file your 1099 tax form with the IRS and relevant state tax authorities.
April 15, 2025: IRS deadline to file individual tax returns. You’ll need your 1099 tax form to file your taxes.
- How will I receive my tax form?
If you have earned above the threshold, you will receive an email invitation by the end of the year via email. The email will come from Stripe, and the subject will be "Get your Depop 2024 tax forms faster by enabling e-delivery" The email will contain a link to set up a Stripe Express account.
If you signed up for a Stripe Express form in previous years, your login details will remain the same and you won’t need to take any action except to review your details.
You’ll be able to download your form from Stripe Express from January 31st.
- What about state level taxes?
If you exceed the threshold set by your state tax authorities, you will receive a 1099-K. Please contact a tax professional to understand more about your federal and state tax guidelines.
- Why haven’t I received an email from Stripe?
If you earned enough to need a 1099 form in 2024, you should have received an email from Stripe by mid January 2024. Emails will be sent out in phases to sellers starting in November 2024.
If you can’t find an email from Stripe, it’s possible that:
- The email may be in your spam/junk mail folder. Please search your inbox for an email titled “Get your Depop.com 2024 tax forms faster by enabling e-delivery”.
- Depop does not have your most current email address on file. Please check any other email addresses you may have used to sign up for Depop, or reach out to Depop to update your email.
- The email address associated with your Depop account is incorrect, missing, or unable to receive mail.
You can request the email to be resent to you via this link, but please note it will only work for the email that is on file with Depop.
- When answering the account claim security questions, it states that my answers are incorrect, what should I do?
Please reach out to Depop support to confirm the information that we have on file against the information you are providing.
If you’ve lost or updated your phone number, you can select the “I no longer have access to this phone number” option to authenticate via email and change your phone number.
- How do I login to my Stripe Express account?
Please note that in order to log into your Stripe Express account, you would have had to accept the Stripe Express invitation that will be sent to you via email. If you are having issues logging in after creating an account, please click here.
- How do I update my tax information?
Open the email from Stripe and click on the “Get started” button, which will prompt you to create a Stripe Express account. After you create an account, you’ll be able to review your tax information (e.g., name, address, and SSN or EIN) and make any necessary changes via Stripe Express. Please update your information no later than 31st December 2024.
- How can I download my electronic 1099-K tax form?
Depop will automatically opt you in to e-delivery, and you’ll be able to access your tax form once available via the Stripe Express platform. Stripe will email you once your form is available for download, which will be in late January.
Please note that if you do not exceed the threshold, then you will not receive a tax form even if you have a Stripe Express account.
- How can I request a paper version of my 1099-K tax form?
If you’d like to request a paper form be mailed to your address, you can select this option within the Stripe Express platform. Go to Tax Form Delivery Method within your account settings, and toggle ‘Postal mail delivery’ to ON. You must do this by December 31st to guarantee a paper form.
- How do I get a corrected 1099 tax form?
If you feel you need corrections made to a 1099 tax form that has already been ‘Filed’, use the edit option in the Tax Forms page of Stripe Express. Information you edit will not appear in the 1099 tax form in the Stripe Express dashboard but it is shared with Depop. You must reach out to Depop after you’ve made the edits you want and we can assist you with a correction. Once Depop files your correction, you will be notified via email and you will see a new 1099 tax form appear in the Stripe Express dashboard.
Please note that it can take up to 72 hours after the platform files the correction for you to be notified.
- Why don’t the earnings on my 1099 tax form match what I see on the Transactions page of Stripe Express?
For questions about differences in your earnings please contact Depop support.
Tax FAQs and additional resources
While we can’t give you specific advice, we have compiled FAQs and additional info below to help you make sense of the situation. We’ll keep you updated as we learn more, but you can always reference the IRS website for the most up-to-date information.
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How can I access my tax forms from previous years?
If you were eligible for a tax form in a previous tax year, you can access these via your Stripe Express account.
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What if I sell something and then issue a refund?
Refunded orders do not reduce your total sales for the year.
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What’s the difference between providing a Social Security number (SSN) or an employer identification number (EIN)?
If you’re a sole proprietor—meaning you’re not a business entity that is a corporation partnership, or limited liability company—you will use your Social Security number for tax filing and reporting. Otherwise, you need a federal employer identification number (EIN) to pay taxes as a business. Even if you’re a sole proprietor, you can still opt to get an EIN. This gives you a few privileges: you can hire employees, incorporate, form a limited liability company or partnership, and have a solo 401(k) retirement plan. Using an EIN instead of a Social Security number can also help to protect against identity theft and establish you as an independent contractor, lending more credibility to your business. You can apply for an EIN from the IRS.
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Is my information secure?
Depop uses industry standard security and encryption technologies to ensure your personal information stays secure and private. Specifically, Depop uses a widely adopted security protocol called Transport Layer Security (TLS) and encrypts sensitive info using Advanced Encryption Standard (AES)-256.
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What if I have more than one Depop shop?
Each shop, even if it is under the same TIN (“Taxpayer Identification Number”) - be it social security number or EIN ( Employer Identification Number) - is issued an individual 1099-K for their shop’s activity. We’re unable to combine shop activity at this time.
We’ve also compiled a few additional resources you might find useful:
- Understanding your Form 1099-K (IRS)
- Instructions for Form 1099-K (IRS)
- Form 1099-K FAQs (IRS)
- IRS instructions for individual sellers (IRS)
- Form 1120 for corporate entities (IRS)
- What online business owners should know about IRS Form 1099-K (TurboTax)
Technical Explanation of Section 9674 of H.R. 1319, the “American Rescue Plan Act of 2021 (The Joint Committee on Taxation)
How do I get in touch for more help?
Please also check out Stripe’s Help Centre article. If you still need help, please contact Depop Support.