Depop Tax Form: The Complete 2025 Guide
If you're selling on Depop, you may be wondering: Do I need to pay taxes? Will Depop send me a tax form? The short answer: yes. Whether you get a Depop 1099-K or not, you're responsible for reporting income. This guide covers everything about the Depop tax form, which forms matter, and how setting up an LLC for Depop sellers can simplify the process.
Do Depop Sellers Get a Tax Form?
In 2025, if you make over $600 in gross sales on Depop, you'll receive a Form 1099-K from Depop's payment processor. A copy also goes to the IRS.
Key points sellers should know:
- The 1099-K reports gross sales before fees, refunds, or shipping
- Even if you don't get a 1099-K, you must still report all Depop income
- Depop may notify you in-app if you're close to the threshold
Looking for more detail on expenses and filing? Check our Depop Taxes Overview.
Which Depop Tax Forms Apply in 2025?
- Form 1099-K – Sent by Depop if you pass the reporting threshold
- Schedule C (Form 1040) – Where Depop sellers report profit and expenses
- Schedule SE – Used to calculate self-employment tax
- State Tax Forms – Some states have lower thresholds and their own filing rules
Related: LLC for Depop Sellers
How to File Depop Taxes Step by Step
Track sales
Record gross income including refunds and shipping fees
Track expenses
Deductible costs include Depop fees, shipping labels, packaging, and inventory
File Schedule C
Report profit/loss from your Depop business
Pay self-employment tax
Required if profits exceed $400
Strong record-keeping makes it easier to claim deductions and avoid mistakes.
Why an LLC Helps Depop Sellers at Tax Time
While you can report Depop taxes as an individual, many sellers form an LLC to:
- Separate personal and business income
- Keep bookkeeping clean for Depop tax reporting
- Open a business bank account for Depop earnings
- Gain basic liability protection
That's where Genie LLC comes in: a $49 flat-rate service that gives you everything you need to launch an LLC. No upsells, no fluff — just a clear path to getting your business set up.
Depop Taxes for Minors
Many Depop sellers are under 18. If you're a minor and pass the $600 threshold, Depop will still issue a 1099-K. Typically, parents or guardians include this income on their return. If you're serious about selling, you can form an LLC with a parent's help in most states.
Read next: Depop Business License
Quick Checklist for Depop Taxes
- • Record every Depop sale
- • Save receipts for shipping and supplies
- • Report income even without a 1099-K
- • File Schedule C and pay self-employment tax
- • Consider forming an LLC for clarity and separation
Frequently Asked Questions About the Depop Tax Form
Does Depop always send a 1099-K?
Only if you cross the IRS threshold. But you must still report all Depop income.
What happens if I don't report Depop earnings?
The IRS can issue penalties and interest. Always report income, even from side hustles.
What deductions can Depop sellers claim?
Depop fees, shipping, packaging, inventory purchased for resale, and in some cases home office expenses.
Do minors selling on Depop pay taxes?
Yes. Depop will issue a 1099-K if you cross the threshold, and the income must be reported.
Is an LLC required for Depop?
Not required, but it makes separating income, opening a bank account, and tracking taxes far easier.
Related Reading
Final Word on the Depop Tax Form
Understanding the Depop tax form is essential if you're earning on the platform. Whether you receive a 1099-K or not, you must file taxes and report your income. The smartest move? Treat your shop like a real business. With Genie LLC, you can form an LLC for just $49, keep your finances separate, and enter tax season with confidence.