November 13, 2025
Facebook Marketplace Sellers
Will You Get a 1099-K From Facebook Marketplace? (2024–2025 Tax Guide for Sellers)
Does Facebook Marketplace Send 1099 Forms? (2024–2025 Private Seller Guide)
Facebook Marketplace can send 1099-K or 1099-MISC tax forms to private sellers who meet IRS thresholds. Learn when Meta reports transactions, what triggers a 1099-K, the $600 rule, and how cash sales affect reporting.
Introduction: Understanding 1099-K Rules for Facebook Marketplace Sellers
If you sell on Facebook Marketplace, you may have seen warnings that Meta could issue a 1099-K or 1099-MISC. With the IRS lowering thresholds and states adding their own rules, confusion is rising for regular users.
This guide gives you a clear, up-to-date explanation of when private sellers might receive a 1099 and when they won’t.
Does Facebook Marketplace Send 1099s?
Yes — but only under certain conditions.
Meta sends a Form 1099-K (or occasionally 1099-MISC) when:
You receive payments through Facebook/Meta’s payment system, and
You pass IRS or state reporting thresholds
Meta does not send 1099s for local cash sales, even if you sold a large amount.
The 1099-K Threshold for 2024 and Beyond
The IRS has scheduled the 1099-K threshold to be:
➡️ $600 in processed payments (goods and services)
This applies only to payments processed by Meta.
You may receive a 1099-K if you:
Shipped items through Marketplace
Used Facebook Checkout
Received payments via Meta Pay
Earned $600 or more through processed payments
You will NOT receive a 1099-K if you:
Sold items locally
Accepted cash, Venmo, Zelle, PayPal F&F
Never used Meta’s payment checkout or shipping system
How Facebook Decides Whether To Send You a 1099-K
Meta tracks payments ONLY when the money flows through their platform.
Here’s what gets reported:
Payment Type | Reported to IRS? | 1099-K Potential? |
|---|---|---|
Meta Pay (shipped items) | ✔️ Yes | ✔️ Yes |
Facebook Checkout | ✔️ Yes | ✔️ Yes |
Cash local pickup | ❌ No | ❌ No |
Venmo / Zelle / PayPal F&F | ❌ No | ❌ No |
In-person hand-to-hand cash | ❌ No | ❌ No |
Do You Owe Taxes If You Get a 1099-K?
Not automatically.
A 1099-K simply reports payments received — it does not determine whether you owe taxes.
You may owe taxes if you:
Sold items for more than you originally paid
Were running a business
Repeatedly sold goods for profit
You generally do not owe taxes if you sold used personal items at a loss.
How To Avoid Receiving a 1099-K on Marketplace
If your goal is to avoid unnecessary tax forms, use:
Local pickup
Cash
Venmo/Zelle/PayPal F&F
ZERO Meta shipping or checkout features
Marketplace becomes a simple Classifieds-style platform — nothing is reported.
Are Facebook Marketplace 1099-K Forms New?
1099-K forms are not new, but the $600 federal threshold is.
States like MA, VT, VA, MD also have lower thresholds, making it possible to receive a 1099 even if you didn’t earn much.
Conclusion: When Private Sellers Should Expect a 1099-K
If you use Facebook Marketplace only for local in-person sales, you will likely never receive a 1099.
If you use shipping, checkout, or Meta Pay — and cross the $600 threshold — Meta is required to report those payments.
Knowing the rules helps you stay compliant and avoid surprises during tax season.
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