Facebook Marketplace can only report payments that run through Meta, which means shipped orders using its checkout. Local cash sales aren't reported by anyone. The federal rule requires a Form 1099-K above $20,000 and more than 200 transactions, though some states set lower limits. Profit is taxable either way, with or without a form.
Most Facebook sellers will never see a 1099-K from Meta, and that doesn't settle whether they owe tax. Those are two separate questions. A 1099-K is a report of payments someone handled for you. What you owe depends on whether you made a profit, and that's true for cash in a parking lot as well.
When does Facebook Marketplace send a 1099-K?
The IRS says a payment app or online marketplace has to send a Form 1099-K if the payments you received for goods or services total over $20,000 in more than 200 transactions. Both have to be true. That federal rule was restored by the One Big Beautiful Bill Act, after years of a planned drop to $600 that never fully took effect.
Your state may ask for less. Some states require a form at much lower amounts, which can mean a 1099-K from a marketplace even when you're well under the federal line. Your state's revenue department has the current number.
Which Facebook sales get reported, and which do not
| How the buyer paid | Who could report it | Still taxable if you made a profit? |
|---|---|---|
| Shipped order through Facebook checkout | Meta | Yes |
| Local sale, cash | Nobody | Yes |
| Local sale, Venmo or PayPal marked as goods and services | That payment app, under the same rules | Yes |
| Money sent as friends and family | Should not be reported, but this is not how to take payment for a sale | Yes |
This is our reading of the IRS rule and of how payments flow. We could not load Meta's own 1099-K help page when we wrote this, so check it for Meta's current wording.
Don't take sale payments as friends and family to avoid a form. Those payments have no purchase protection, the app's terms generally prohibit it, and it doesn't change what you owe.
Do you pay tax on Facebook Marketplace sales?
It depends on whether you sold above cost. The IRS counts personal items sold at a gain as income. If you sell a couch for less than you paid for it, there's no gain to tax, and a stray form doesn't change that. If you buy things to resell, you're running a business, and profit is taxable from the first dollar, even with no 1099-K at all. In that case you can subtract what you paid for the items, your fees, supplies and mileage, which our reseller tax guide walks through with a worked example.
This is general information. For your own return, ask a tax professional.
What if you got a 1099-K for personal items?
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Don't ignore it, and don't assume you owe tax on the whole number. A 1099-K shows gross payments, before fees, shipping and what the item cost you. The IRS already has a copy, so report it and show why the taxable amount is lower. Forms generally go out by January 31 for the prior year, and the IRS's page explains what to do if the form is wrong.
What to keep from day one
- Sale records from every marketplace, including local cash sales, since nothing else will record those for you.
- What you paid for each item, with receipts where you have them.
- Shipping supplies, fees and any tool subscriptions.
- Mileage for sourcing trips and local handoffs, if you run this as a business.
A spreadsheet is enough at first. If you sell on several marketplaces, export each one's records in January while they're easy to get, since histories get harder to pull with time. Rules differ by marketplace too: our Vinted US guide covers Vinted's reporting, and the tax guide covers the rest.
Frequently Asked Questions
Does Facebook Marketplace report to the IRS?
Only for payments that run through Meta, such as shipped orders with checkout, and only when you pass the reporting threshold. Local cash sales are not reported by anyone, but any profit is still taxable.
What is the Facebook Marketplace 1099 threshold?
The federal threshold is more than $20,000 in payments and more than 200 transactions in a year. Some states set lower limits, so check your state's rule too.
Will I get a 1099 from Facebook Marketplace?
Most sellers will not. You would need shipped checkout sales above the federal or your state's threshold. Local sales paid in cash do not count toward it.
Do you have to report Facebook Marketplace income?
You report profit, with or without a form. Selling personal items below what you paid generally creates no gain. If you buy to resell, profit is taxable business income.
Does selling on Facebook Marketplace count as income?
If you sold for more than the item cost you, or you do it as a business, yes. A used couch sold for less than you paid is generally not income, because there is no gain.
What if I sold over $600 on Facebook Marketplace?
The $600 federal threshold no longer applies. The federal rule is over $20,000 and more than 200 transactions, although some states still use lower amounts.