If you sold tickets on StubHub in 2022, you may receive a 1099-K tax form reporting your sales activity. This form helps you report your StubHub earnings correctly on your tax return. Here’s what to know about 1099-Ks from StubHub:
What is a 1099-K?
A 1099-K is an information return used to report payment transactions to the IRS. It shows the gross payments you received through payment settlement entities like StubHub.
If you received over $20,000 in gross payment transactions and over 200 transactions through StubHub in 2022, StubHub is required to issue you a 1099-K by January 31, 2023. The 1099-K shows your total reportable transactions, so you can report this income on your tax return.
When will I get my 1099-K from StubHub?
StubHub is required to issue 1099-Ks by January 31 for the prior tax year. So you should receive your 1099-K for 2022 StubHub earnings by January 31, 2023.
StubHub will send an email notification when your 1099-K is available to download from your StubHub account. Be sure to check your inbox in January 2023 for this email.
How do I get my 1099-K from StubHub?
To access your StubHub 1099-K:
1. Log into your StubHub account
2. Go to the ‘Account Settings’ section
3. Click on ‘Tax Information’
4. Select the appropriate tax year (2022)
5. Download your 1099-K
You can also change your tax information and address here if needed. Note that StubHub will mail a paper 1099-K to your address on file if you do not download it from your account by early February.
Why you need a 1099-K from StubHub
It’s important to get your 1099-K from StubHub because this form reports your earnings to the IRS. Specifically, a 1099-K serves a few key tax purposes:
1. Reports your gross transaction amounts
Your 1099-K from StubHub shows the gross payments you received through the platform. This includes all ticket sale transactions, fees, shipping costs and taxes. You need this total gross amount figure to accurately calculate your tax liability.
2. Provides documentation for income reporting
You must report all income earned from StubHub ticket sales on your tax return, just like your regular wages or other income. The 1099-K provides documentation to prove the amount of income you made on StubHub.
3. Allows you to claim applicable deductions
While the 1099-K reports gross transaction amounts, you may be able to deduct eligible fees, costs and losses from your StubHub earnings. Having the 1099-K allows you to calculate your net taxable income after applicable deductions.
4. Avoids tax notice mismatches
The IRS also receives a copy of your 1099-K from StubHub. Having your copy allows you to match the income reported to the IRS and avoid tax notice errors or penalties.
How are 1099-Ks reported to the IRS?
Along with issuing Form 1099-Ks to sellers like you, StubHub must also file the same information returns with the IRS by January 31. This reporting occurs electronically.
The IRS uses 1099-K reporting to match income amounts reported on your federal tax return. If there is a discrepancy between your tax return and the 1099-K amounts, it could trigger an IRS notice or audit.
Here is some key information on how 1099-Ks are reported to the IRS:
– Box 1a: Gross transaction amounts
This reports your total gross payments processed through StubHub for the year, before expenses or fees.
– Box 4: Federal income tax withheld
If StubHub withheld any federal taxes from your earnings, it will be reported here.
– Box 5: State tax withheld
If applicable, any state taxes withheld will be shown here. Not all states levy income tax.
– Your name, address and Taxpayer Identification Number (TIN)
To properly match the 1099-K to your tax return, your name, address and TIN as shown on your StubHub account are included.
What earnings are reported on the 1099-K?
Your 1099-K from StubHub reports all gross transaction amounts paid to you during the tax year. This includes the following types of income:
– Sale of tickets
The gross sales proceeds from all ticket transactions are reported. This includes the ticket’s full sale price, even if the event was later cancelled or refunded.
– Service and delivery fees
Any StubHub service, fulfilment and delivery fees paid by buyers are reported as income.
– Seller fees
The fees charged to you by StubHub are still reported as gross income, even though these reduce your net earnings.
– Other income
If you earned any other income through StubHub, such as rewards or bonuses, it is included in gross amounts.
Note: Chargebacks and refunds you issued to buyers do NOT reduce amounts reported on the 1099-K. You will need to deduct these separately on your Schedule C tax form.
What costs can I deduct from gross income?
To calculate your actual taxable income from StubHub sales, you deduct associated costs from the gross amounts on your 1099-K. Potential deductions include:
– StubHub seller fees
Deduct all StubHub final value, commission and other fee charges from your gross income.
– Ticket costs
Your cost of acquiring the tickets sold is deductible. Save receipts to support your cost basis.
– Shipping & delivery costs
The cost of postage and delivery services to fulfill orders is deductible.
– Refunds & chargebacks
Refunds you issued to buyers for cancelled events or other reasons can reduce your taxable income if not already reflected on your 1099-K.
– Other expenses
Deduct other expenses directly related to selling on StubHub, like packaging supplies, internet fees and mileage to the post office.
Be sure to save receipts and documentation for all deductible StubHub expenses. Only ordinary and necessary business expenses are deductible.
How does a 1099-K impact my taxes?
Receiving a 1099-K for your StubHub income has several implications for filing your taxes:
– Report income on Schedule C
You should report StubHub income (less deductions) on Schedule C with your Form 1040 tax return, along with any other self-employment income.
– Subject to self-employment tax
Income from your own ticket resale business on StubHub is considered self-employment income. This makes it subject to self-employment tax of 15.3% on the first $147,000 of net income.
– Impact on capital gains
If held for over one year, tickets may qualify for long-term capital gains treatment. You still must report this on Schedule C.
– Quarterly estimated payments
Once your StubHub income exceeds $1,000, you may need to begin making quarterly estimated tax payments to avoid underpayment penalties.
Consult a tax professional to understand how your 1099-K and StubHub activity impacts your return. Proper reporting is important to avoid IRS issues.
Can I get a corrected 1099-K?
If you find an error on the 1099-K you receive from StubHub, you can request a corrected form. This is important so that your income is reported accurately to the IRS.
To request a corrected 1099-K from StubHub, contact their customer support team:
– Email:
– Phone:
866-788-2482
Explain the error you discovered and request a corrected 1099-K. Be ready to provide documentation to support your correction claim.
StubHub will review your request and issue a corrected 1099-K if warranted. You will need to wait for the corrected 1099-K before filing your tax return in order to report your income accurately.
What if I don’t get a 1099-K from StubHub?
If you sold tickets through StubHub but do not receive a 1099-K by early February, you still must report the income. The IRS requires you to report all taxable income, even if no 1099 was issued.
First, double check your StubHub account to confirm no 1099-K is available for download. If it’s missing, take the following steps:
1. Contact StubHub
Reach out to StubHub to request they issue the missing 1099-K form. Provide details on your selling activity so they can research.
2. Review records
If you have detailed records reflecting your StubHub transactions and income earned, use these to estimate your gross income amount.
3. Self-prepare substitute 1099
You can prepare a substitute Form 1099-K including your name, TIN, and gross income details. Note “SELF-PREPARED” on it.
4. Report income on Schedule C
Even without the official 1099-K, go ahead and accurately report your StubHub income on Schedule C, deducting applicable expenses.
5. Retain records
Keep all records in case the IRS inquires about the unreported 1099-K income later.
While an official 1099-K form is preferred, you should still report income from your own detailed records in order to avoid tax issues.
Can I deduct my losses on tickets?
If you sold tickets at a loss on StubHub in 2022, you may be able to deduct these capital losses on your tax return to offset other income.
Key rules for claiming ticket loss deductions include:
– Must itemize deductions
Only taxpayers who itemize deductions on Schedule A can claim capital losses.
– Apply $3,000 capital loss limit
Losses can offset up to $3,000 of ordinary income. Excess carries forward.
– Short-term vs. long-term losses
The holding period determines if they are short-term or long-term losses.
– Maintain records
Keep receipts and other documentation showing your cost basis in the tickets and sale price.
– Report on Schedule D
Deduct capital losses on Schedule D and also apply the deduction on Schedule C.
Consult a tax professional to ensure you properly claim eligible ticket losses. Deductions can help ease the tax bite from your StubHub sales.
What are the penalties for incorrect 1099-K reporting?
It’s important to report your 1099-K income from StubHub accurately and completely on your tax return. Failure to do so can lead to:
– Underpayment penalties
If underreported income leads to an underpayment of tax, penalties apply. The penalty is up to 20% of the unpaid tax.
– Unpaid tax interest
Interest accrues on any portion of the correct tax that remains unpaid. The current IRS rate is 6% annually.
– Underreporting penalties
Substantial underreporting of income over multiple years can trigger additional penalties.
– Audit risk
Significant underreporting related to a 1099-K may increase your audit risk.
– Criminal prosecution
Willfully failing to report income is tax fraud, which can mean fines and jail time in severe cases.
Accurately report all StubHub income to avoid penalties, interest and other problems with the IRS. Supporting deductions properly can help minimize your tax bill.
Can I get a tax refund on seller fees?
Many sellers wonder if they can get a tax refund for the StubHub seller fees deducted from their payouts. Since these fees reduce your net income, you cannot get a direct refund for them. However, deducting seller fees does provide a beneficial tax effect:
– Reduces taxable income
Deducting fees lowers your net income subject to tax, which reduces your tax liability.
– Lowers self-employment tax
The fees also lower your earnings subject to the 15.3% self-employment tax, providing more savings.
– Could trigger refund
If the fee deductions lower your tax liability enough, you may end up with an overpayment and tax refund when you file.
So while you don’t get a direct refund of the fees, writing them off does lower your tax bill and may lead to an indirect refund result. Just be sure to deduct the fees properly on Schedule C.
Conclusion
Receiving and reporting a 1099-K for your StubHub ticket sales is important to stay in compliance with IRS rules. Be sure to download your 1099-K from your StubHub account each January. Review it for accuracy and report the gross income amount on Schedule C, deducting related costs and losses. Keep detailed records to support the amounts on your tax forms. With proper reporting, you can avoid issues with the IRS and claim the maximum tax deductions to reduce your StubHub income tax liability. Consult a tax professional if you need help understanding how to handle 1099-K reporting.