Updated May 2026 · For tax year 2026
Whatnot taxes 101
1099-K thresholds, Schedule C structure, what's deductible, COGS tracking, year-end checklist. Written for Whatnot sellers, not crypto bros or generic e-commerce founders.
Educational, not tax advice.
Your situation may have wrinkles this guide doesn't cover. Talk to a CPA or enrolled agent before filing. We're software people, not accountants.
What forms come from Whatnot
Whatnot will issue a 1099-K if your gross sales for the year are above the IRS reporting threshold. The 1099-K shows your grossWhatnot revenue (before fees, refunds, COGS). It's not your taxable income.
Threshold history:
- 2023 and earlier: $20,000 + 200 transactions (federal)
- 2024 to 2025: phased reductions ($5,000 then $2,500)
- 2026 and later: $600 federal (per current law, subject to change)
- Some states (MA, VT, IL, MD, VA, DC) have lower thresholds, even $600 to $1,000, regardless of federal
Verify the current year and your state at irs.gov before assuming.
Heads up:even if you don't receive a 1099-K (under the threshold), your Whatnot income is still reportable. The form is a notification, not a tax-obligation trigger.
Schedule C: line by line
If you sell on Whatnot for profit (not as a hobby), you file Schedule C: Profit or Loss From Business. Here's how Whatnot transactions map to the form.
| Schedule C line | What goes here | From which CSV column |
|---|---|---|
| Line 1 | Gross receipts or sales | Sum of Original Item Price (sale rows only) |
| Line 2 | Returns and allowances | Sum of negative Transaction Amount on refund rows |
| Line 6 | Other income (tips) | Sum of Transaction Amount on Tips rows |
| Line 8 | Advertising (Boost spend) | Ledger CSV ad spend rows |
| Line 27a | Other expenses: commission, processing, shipping | Commission Fee + Payment Processing Fee + Shipping Fee |
| Part III, Line 36 | Purchases (cost of inventory sold) | Cost of Goods column, or your records if blank |
| Part III, Line 42 | Cost of goods sold | Same as Line 36 if you don't carry inventory |
What's deductible
- Whatnot commission. Fully deductible (Line 27a).
- Payment processing fees. Fully deductible (Line 27a).
- Seller-paid shipping on giveaways, refund-related adjustments, or anything you covered out of pocket. Line 27a.
- Cost of inventory you sold. Deductible via Part III COGS.
- Boost or promotional spend. Line 8 advertising.
- Packing supplies.Top loaders, sleeves, bubble mailers, painter's tape. Line 22.
- Home office if you have a dedicated streaming space (Line 30 or Form 8829).
- Mileage to the post office. Line 9 (vehicle) at the IRS standard rate.
- PSA / BGS grading fees. Line 27a, or include in COGS if you added it to the inventory cost.
- Streaming gear. Camera, lights, backdrops. Depreciation (Line 13 or Form 4562).
- Internet. Pro-rated business-use percentage.
- Software subscriptions. Including AfterShows, card-grading lookups, accounting tools. Line 18 or 27a.
Tracking your costs is the hard part
Whatnot doesn't know what you paid for inventory. Their CSV has a Cost of Goods column, but it's only filled in if youentered cost at listing time. Most sellers don't.
Without those records, your Schedule C understates inventory cost. Meaning you pay tax on revenue that included the money you spent restocking. For a typical Whatnot seller that can be thousands in overpayment per year.
Patterns sellers actually use:
- Per-item entry. Type cost when you list. Most accurate. Most tedious.
- Bulk-lot distribution. Bought a hobby box for $145 and pulled 6 cards. Distribute $145 across the 6 sales proportionally (or split it equally).
- Default rules."Pokemon ETBs always cost me $25 wholesale". Set once, applies to all matches.
- Receipt import. Pull eBay or Mercari purchase history and match by date and title.
Year-end checklist
- Download all 52 Weekly Orders Reports for the year (Profile, Financials, Statements). Or the Annual Statement if Whatnot issues one.
- Reconcile against your 1099-K. Gross receipts should match.
- Confirm COGS is filled in for every sale. Fill any gaps from your purchase records.
- Sum commission, processing, and shipping into Other Expenses (Line 27a).
- Sum your Boost spend separately for Line 8.
- Add packing supply receipts, mileage log, and home-office calculation if applicable.
- Drop into Schedule C, sanity check Net Profit (Line 31), file.
We automate steps 1 through 4. Upload weekly CSVs all year, fill in COGS as you sell, hit Export Schedule C in January. 5 minutes instead of 10 hours.
FAQ
Will I get a 1099-K from Whatnot?
If your gross Whatnot sales for the year are above the IRS 1099-K threshold, yes. The threshold has shifted: $20,000 / 200 transactions historically, and is dropping toward $600 in coming years. Some states (MA, VT, IL, MD, VA, DC) have lower thresholds. Check IRS.gov for the current year and your state.
Where do Whatnot fees go on Schedule C?
Whatnot commission, payment processing fees, and seller-paid shipping all go on Schedule C Line 27a (Other expenses). They're fully deductible. Cost of goods sold goes in Part III (Lines 36 to 42). Boost or promotion spend goes on Line 8 (Advertising).
Can I deduct what I paid for inventory?
Yes. Cost of goods sold (COGS) is fully deductible on Schedule C Part III. Whatnot doesn't track this, so you have to. We capture COGS per item so it rolls up automatically at year-end.
What if I sell something at a loss?
If you're a hobby seller (not running a business), losses can't offset other income. If you're filing Schedule C as a business (consistent profit motive, regular activity), losses count against gross income normally. The IRS distinguishes the two by intent and activity pattern.
Does Whatnot's estimated revenue match what I report?
No. Whatnot's in-app estimated revenue is for quick visibility. Their own help docs say not to use it for tax filing. Use the Seller Weekly Orders Report (the downloaded CSV) for the real transaction numbers.
A Schedule C-ready CSV in one click
Upload your weekly reports through the year. We track COGS, fees, refunds, tips, and Boost spend by line item. At year-end, hit Export Schedule C and download a CSV with every line mapped. Drop into TurboTax, FreeTaxUSA, or hand it to your CPA.