Please note: The IRS delayed the reporting requirement for sellers who made over $600 in 2022 – you can read their announcement here. The prior federal threshold of $20,000 in sales and more than 200 transactions remains in place for the 2022 tax year.
The information below pertains to the new requirements that are in effect as of January 1, 2023.
Marketplace sellers on Bandcamp who make over $600 USD in a given tax year from sales on Bandcamp will be issued a 1099-K form. Please note the tax form you receive will reference Epic Games, Inc., Bandcamp's parent company.
You can expect to receive your 1099-K form via email as well as delivered to your physical address. Both will be sent out by January 31st.
I received an incorrect tax form
Some Bandcamp accounts may have inadvertently filled out and received an incorrect tax form. If you were a recipient of an incorrect tax form, we’ll issue a correction in the coming weeks and also ensure that the correct information is reported to the IRS as well as state taxing authorities. In some cases, you may be required to verify your tax information again. None of these forms have been submitted to the IRS.
If your account has been impacted, we’ll reach out to you shortly. You may also contact us if you believe there was a mistake with the form you received. Although we are unable to provide specific tax advice, we may clarify details if needed.
I received an additional 1099-K from PayPal that matches my Bandcamp earnings
Due to a recent PayPal error, some Bandcamp account holders may have received duplicate 1099 tax forms from PayPal and Bandcamp’s partner, Tax ID, displaying 2022 income. Your earnings are not subject to double taxation, and unless you have additional PayPal earnings, you should have only received a form from Bandcamp.
PayPal is correcting this mistake and assures us that the erroneous PayPal tax forms have not been submitted to the IRS.
If you mistakenly received a duplicate PayPal tax form, PayPal will contact you electronically or via regular mail and send you a corrected 2022 form by the end of February.
If your payment transactions are below the tax reporting threshold, then PayPal will issue you a corrected 2022 Form 1099-K showing no ($0) reportable transactions. They will also ensure that only the corrected 2022 Form 1099-K is reported to the IRS as well as state taxing authorities. If you have earnings outside of Bandcamp via PayPal you may still receive two forms, one for your Bandcamp earnings and another for your additional earnings.
You may also contact us if you believe there was a mistake with the form you received. For specific guidance, please contact a tax professional. We are unable to advise on specific tax situations.
I received an additional 1099-K from PayPal, will I be taxed twice?
Ultimately, it is up to you to decide what to include on your tax returns.
If you’ve made additional sales directly to your PayPal account outside of transactions processed by Bandcamp, these may be reported as additional income through a separate 1099-K form issued by PayPal.
Please speak to a tax professional for further information.
What if I ran a Subscription service through Bandcamp?
For US sellers who run a Subscription service that collected over $600 USD, expect to receive a separate 1099-K form through Stripe, our payments processor.
Where can I find advice about how this applies to my tax situation?
For specific guidance on your individual tax situation, please contact a tax professional. We are unable to advise on specific tax situations.
I’m not located in the US, should I still receive a 1099-k form?
No, if your tax information is verified outside of the United States, then you would not receive a 1099-k.
I’ve identified an issue with my 1099-K form. What should I do?
If you have a question about the gross amount calculation shown on your form, or if you would like to provide an updated physical address, please contact us here. Although we are unable to provide specific tax advice, we may clarify details if needed.
Please note that Bandcamp cannot make changes to a seller’s verified entity (company or individual) retroactively. The PAYEE’S name on your 1099-K must match the taxable entity provided during tax verification.