StubHub is one of the largest ticket resale marketplaces, allowing buyers and sellers to trade tickets for various events. If you have sold tickets on StubHub, you may be wondering if you will receive a 1099 tax form from them. Getting a 1099 can simplify tax reporting, but not everyone who sells on StubHub will get one.
Overview of 1099 Tax Forms
The 1099 form is used to report various types of miscellaneous income to the IRS. There are several different types of 1099s that report different types of income:
- 1099-MISC – Reports non-employee compensation, rent payments, royalty payments, etc.
- 1099-K – Reports payment card and third party transactions
- 1099-INT – Reports interest income
- 1099-DIV – Reports dividend income
- 1099-B – Reports proceeds from broker transactions
When you receive a 1099 form, it helps simplify your taxes because the IRS also gets a copy of the 1099 that was issued to you. This allows the IRS to cross-check that you are properly reporting your 1099 income on your tax return.
The most common 1099s issued for sellers on StubHub are the 1099-K and 1099-MISC.
StubHub 1099-K Reporting
StubHub issues a 1099-K form to sellers who exceed 200 transactions and $20,000 in gross sales in a calendar year. The 1099-K reports your gross sales volume, not your profit.
Here are some key facts on StubHub’s 1099-K reporting:
- The threshold for 1099-K reporting is 200 transactions AND at least $20,000 in gross sales.
- StubHub looks at sales volume across ALL your StubHub accounts.
- Transaction fee credits you receive from StubHub are not counted as reductions to gross sales.
- Chargebacks and refunds you issue to buyers do reduce your gross sales amount.
- You must provide your SSN or EIN when registering a StubHub account to receive a 1099-K.
If you meet both the transaction count and gross sales volume thresholds, StubHub will mail you a 1099-K by January 31st of the following tax year.
For example, if you sold tickets in 2022, you would get your 1099-K by January 31, 2023. You would then report that 1099-K income on your 2022 tax return.
StubHub 1099-MISC Reporting
In some cases, StubHub may issue you a 1099-MISC instead of a 1099-K:
- If you are a business seller and provided your EIN to StubHub
- If you sold less than 200 tickets but your gross sales exceeded $600
The thresholds for 1099-MISC are lower than 1099-K. You will get a 1099-MISC if:
- You provided an EIN instead of SSN
- You exceeded $600 in gross sales (no 200 transaction minimum)
So in summary, you may get a 1099-K if you exceed 200 sales and $20,000 in gross sales. Or you may get a 1099-MISC if you provided an EIN or exceeded $600 in sales.
When You Don’t Get a 1099
Many small and infrequent StubHub sellers will not exceed the 1099 reporting thresholds. For example, if you only sold a handful of tickets for less than $600 total, you likely would not get a 1099.
In cases where you don’t get a 1099, it is still your responsibility to report your sales income on your tax return. You should keep good records of your StubHub transactions so you can accurately report your profits.
How StubHub 1099s Affect Your Taxes
Receiving a 1099-K or 1099-MISC from StubHub just means you’ll need to report that income on your tax return. But it doesn’t necessarily mean you will owe taxes on the entire amount reported.
Here is how StubHub 1099 income affects your tax liability:
- You must report the gross income amount from the 1099 on your return.
- You can deduct your basis cost of acquiring the tickets and any fees paid to StubHub.
- This results in your net profit amount being taxed.
For example, say you sell $10,000 in tickets and receive a 1099-K from StubHub for that amount. But the tickets only cost you $6,000 total. You would report the $10,000 of 1099-K income, take $6,000 in deductions for the cost of the tickets, and pay tax on the resulting $4,000 profit.
Best Practices for 1099 Reporting
To make tax reporting go smoothly, here are some best practices when selling tickets on StubHub:
- Track your basis – Keep records of what you originally paid for the tickets.
- Save StubHub fee invoices – Fees can be deducted too.
- Report all income – Even if no 1099 was issued.
- Reconcile with 1099s received – Confirm StubHub numbers match your records.
- Only deduct valid expenses – Cost of tickets, fees, shipping, etc.
Proper documentation will help support the deductions to reduce your taxable income from StubHub ticket sales.
Sample Scenario
Here is an example to illustrate how StubHub 1099 reporting works:
- Tom sells 300 tickets on StubHub for a total of $28,000
- The tickets originally cost Tom $18,000 total
- Tom paid StubHub fees of $2,000
Gross Sales Reported on 1099-K | $28,000 |
Cost of Tickets Sold | $18,000 |
Fees Paid to StubHub | $2,000 |
Net Profit Amount Taxed | $8,000 |
Even though Tom received a 1099-K for $28,000, he only owes tax on his $8,000 profit after deducting his costs and fees. The 1099-K reports gross sales, not net profit.
Getting Help with 1099 Reporting
If you have questions about 1099 reporting requirements or how to handle them correctly on your tax return, it may help to consult a tax professional. A CPA or enrolled agent can assist with:
- Determining what income to report if no 1099 was received
- Reconciling your records to received 1099s
- Claiming all eligible deductions to reduce taxable income
- Filing Schedule C to properly report business income and expenses
This can help provide peace of mind that your StubHub ticket sales are being handled correctly on your tax return.
Conclusion
In summary, you will receive a 1099 tax form from StubHub if you exceed 200 sales and $20,000 in gross sales in a year. This may be a 1099-K reporting your gross proceeds or a 1099-MISC in certain cases. Even if you don’t get a 1099, be sure to report your ticket sale profits. Keep detailed records to support deductions for the cost of tickets sold and fees paid. With good documentation and tax filing, you can reduce your taxable income from StubHub ticket sales.