Do I Owe Taxes on My Poshmark Sales in 2026?

Short answer: yes, if you sold for a profit. The IRS considers reselling a business activity, and business income is taxable regardless of whether you receive a 1099-K form.

Last verified: January 2026. Federal 1099-K threshold for 2025-2026: $20,000 AND 200 transactions.

The 1099-K threshold for 2026

For tax years 2025 and 2026, the federal 1099-K reporting threshold is $20,000 in gross payments AND 200 transactions. This means Poshmark will send you (and the IRS) a 1099-K form if you meet both thresholds. Congress delayed the planned reduction to $600, keeping the higher threshold through at least 2026.

However, some states have lower thresholds. For example:

• Massachusetts, Vermont, Maryland, Virginia: $600 and 1 transaction
• Illinois: $1,000 and 4 transactions

If you live in one of these states, you may receive a 1099-K from Poshmark even if you're well under the federal threshold.

But I'm just cleaning out my closet

If you're selling personal items for lessthan you originally paid for them, you generally don't owe taxes on those sales. There's no profit, so there's no taxable income. But you need to be able to prove what you paid.

The moment you start buying items with the intent to resell them at a higher price, the IRS considers that a business activity. Your net profit (sales minus costs) is taxable as self-employment income, reported on Schedule C.

What counts as a deductible cost?

As a reseller, you can deduct the actual costs of doing business:

• Cost of goods sold (COGS): What you paid for the item
• Platform fees: Poshmark's 20% commission
• Shipping costs: What you paid for shipping labels
• Supplies: Boxes, poly mailers, tissue paper, hangers
• Mileage: Driving to source inventory ($0.70/mile for 2026)
• Home office: If you have a dedicated space for your business

How to track it properly

The biggest mistake resellers make is not tracking costs per item. When you source 20 items at Goodwill for $85 total, you need to know what each one cost. When tax season arrives, you need to match each sale to its cost basis.

Soldbook automates this: import your Poshmark sales report, match items to their costs, and generate a Schedule C-mapped Tax-Ready Report. It takes about 10 minutes to set up.

Informational only — not tax advice.