If you meet certain profit and sales thresholds, you may receive a Form 1099-K from Etsy. If you receive a Form 1099-K, that means Etsy also sent a copy of the same form to the IRS and/or your state’s tax authority. So you’ll want to be sure to account for this income when you file your taxes. You have to meet the following qualifications to receive a Form 1099-K from Etsy: Federal IRS requirements (both must be met) You had $20,000 in sales through Etsy Payments during the calendar year, and You received 200 or more payments through Etsy Payments over that same period State requirements (Massachusetts and Vermont residents only) You have $600 or more in sales through Etsy payments in a calendar year