If you sell books on PangoBooks, the earnings you receive may be taxable. As a marketplace, PangoBooks is required to file a Form 1099-K if you meet certain thresholds in a calendar year.
Based on the most recent regulatory updates from the IRS, marketplaces like PangoBooks are required to submit 1099-K forms for sellers who earn over certain amounts. For tax year 2025, the minimum amount has been changed to $20,000. If your account has earned more than $20,000 in 2025, we will be in touch at the beginning of each year with information on filing a W-9 form.
For more information, please read the below FAQ and feel free to contact our team with any additional questions. You can also read this document from the IRS for more information on form 1099-K.
🧾 What Does a 1099-K Report?
A 1099-K reflects your gross sales processed through PangoBooks in a given year. It does not calculate your profit or determine your tax liability. It is similar to the W-2 form you might receive from an employer, but reflects your income from merchandise (i.e., book) sales. The amount reported on your PangoBooks 1099-K will include all earnings from sales, regardless of whether you transferred the earnings to your bank or PayPal account.
Example: If you sell a book for $10 but you paid $22 for it, the 1099-K will report the $10 sale amount, but you may have no taxable income for that transaction since you sold at a loss.
❓ Why Am I Being Asked for My SSN or ITIN?
To comply with IRS rules, PangoBooks collects taxpayer information when required and may ask you to complete a W-9 form. Your data is entirely encrypted and used solely for compliance.
❔ Where will I be able to access my 1099-K form?
Your 1099-K form will be posted on the Tax Center section of your account on the PangoBooks website. Once logged into your account, please go to the Account menu and select Tax Center. If you need assistance logging into your account, please contact our team at
🤔 What happens if I don’t provide my tax information?
If you hit the threshold and don’t provide this information, your payouts and account status may be temporarily put on hold.
⏲️ When are the deadlines for submitting my information?
We ask that all required sellers submit their tax information by the end of the year. We will submit and provide the 1099-K forms by the end of January 2026.
💵 Is the reporting threshold calculated using the full sale cost of the book, or just the 80% earnings?
The reporting threshold for which we are required to submit a 1099-K form is calculated for sellers through their 80% earnings across their sales in tax year 2025.
💲 What About Sales Tax?
PangoBooks handles sales tax collection for you when required. If you are a seller, you do not need to manually collect or remit sales tax on your PangoBooks orders.
🏷️ Hobby vs Business
If selling books is a serious business for you (aka: frequent listings, large volumes of sales and inventory), you may be considered self-employed and could owe additional government taxes. If it’s a hobby or side project, different tax rules apply. We recommend checking with a tax professional to determine your status. You can find more information on this topic from the IRS here.
✅ What You Should Do
Keep good records of each book sold: purchase cost, sale price, fees, shipping cost.
When a 1099-K is issued, compare it with your own records.
Consult a tax professional to understand how this applies to your personal situation.
Please note that nothing on this page should be read as specific tax advice, and if you have any questions about your personal tax situation or anything else, we recommend consulting with a tax professional.