If you're selling on Drip and your PayPal account meets IRS reporting thresholds, you may receive a 1099-K form from PayPal for tax purposes. Since all payouts for Drip sales are handled through PayPal, you can easily retrieve the necessary tax forms directly from your PayPal account.
Important: Who Receives a 1099-K from PayPal
PayPal only issues a 1099-K if your account meets IRS reporting thresholds for the tax year.
For federal tax reporting, PayPal is required to issue a 1099-K if both of the following are met:
$20,000 or more in gross payments, and
200 or more transactions for goods and services during the calendar year
If you do not meet these thresholds, you may not see a 1099-K in your PayPal account. This is expected behavior.
⚠️ You are still responsible for reporting all income, even if you do not receive a 1099-K.
Here’s how to find your 1099-K form in PayPal:
Step 1: Log into Your PayPal Account
Begin by visiting PayPal.com and logging into your account using your username and password. Make sure you’re using the account where your Drip sales payments are deposited.
Step 2: Access the Account Settings
Once logged in, click on the gear icon located at the top-right corner of the page. This will open your account settings.
Step 3: Go to Statements and Taxes
In the account settings, navigate to the “Statements and Taxes” section. This is where PayPal stores important tax documents like the 1099-K.
Step 4: Look for Your 1099-K Under Tax Documents
Under the Tax Documents section, you should see your available tax forms, including the 1099-K form for any applicable years. If a 1099-K was issued for a given tax year, it will appear here. Tax forms are typically available by January 31 of the following year.
Note: Drip does not generate or send tax forms. All tax reporting related to payouts is handled directly by PayPal. If you have questions about your specific tax situation, consult a qualified tax professional.