Short answer: Gumroad only sends a Form 1099-K (through its payment processor, Stripe) to U.S.-based sellers who had more than $20,000 in gross volume and more than 200 transactions in the previous calendar year. If you get one, don’t expect it to match your bank deposits: it reports gross transaction volume, which includes Gumroad’s fees and the sales tax or VAT collected at checkout. Whether or not a form arrives, you still have to report your Gumroad income.
This guide covers who gets the form, why the number looks too high, how to reconcile it, and what U.S. and UK sellers should do at tax time. Everything here comes from Gumroad’s own help pages and official IRS and HMRC guidance, which are linked throughout.
Who gets a Gumroad 1099-K?
According to Gumroad’s help article on 1099s, you receive a 1099-K only if your account meets all of these conditions for the previous calendar year:
- The account is based in the United States
- More than $20,000 USD in total gross volume
- More than 200 transactions
The form comes from Gumroad’s payment processor, Stripe, and you can download it for every eligible year from the Tax center in your dashboard. Gumroad says it starts filing in January for the previous year, and the form typically reaches sellers between late January and March.
The $20,000 / 200 figures match the federal rule. The IRS explains on its Understanding your Form 1099-K page that payment apps and online marketplaces (third party settlement organizations, or TPSOs) must report when your payments for goods or services exceed $20,000 in more than 200 transactions. The IRS 1099-K FAQs note that the One, Big, Beautiful Bill retroactively brought back this threshold, replacing the $600 rule that had been scheduled under the American Rescue Plan Act. Keep in mind that the IRS also says platforms may send a 1099-K for lower amounts, and some states have lower reporting thresholds of their own.
What about 1099-MISC for affiliates?
If you earn commissions as an affiliate for other Gumroad creators, the form is different. Gumroad says affiliates with commissions greater than $600 in the previous year receive a Form 1099-MISC. You’ll get either a 1099-K or a 1099-MISC depending on whether you’re selling your own products or earning affiliate commissions.
Why your 1099-K won’t match your payouts
This is the part that confuses most sellers. Gumroad’s help page is blunt about it: the 1099-K shows Gumroad’s transaction volume attached to you, not the amount it paid you. Here is what causes the gap:
| Reason | What happens | Effect on the form |
|---|---|---|
| Gumroad fees | Gumroad’s fee is included in the gross amount | Form is higher than your payouts |
| Sales tax and VAT | Tax collected at checkout is included, even though Gumroad remits it, not you | Form is higher than your payouts |
| Affiliate commissions | Commissions paid to your affiliates are part of gross volume | Form is higher than your payouts |
| Stripe Connect / PayPal Connect sales | Sales through your own connected accounts are left out | Form can be lower than total sales |
| Timing | Sales are assigned to the year funds became available, and payouts lag sales by at least 7 days | Late-December sales can show up on next year’s form |
For context, Gumroad’s pricing page lists a fee of 10% + $0.50 per transaction on sales through your profile or direct links, and 30% on sales to new customers who find you through the Discover marketplace. Since January 1, 2025, Gumroad has also acted as the merchant of record, which means it collects and remits sales tax and VAT on your sales. Both of those amounts sit inside the 1099-K gross figure, so a form that looks higher than your payouts is often explained by them rather than by an error.
The IRS backs this up. Its What to do with Form 1099-K page says the gross payment amount in Box 1a is not adjusted for fees, credits, refunds, shipping, cash equivalents or discounts, and that you can deduct those items using your own records.
How to reconcile your Gumroad 1099-K, step by step
- Download the form and the transaction report. In Gumroad’s Tax center, request the “Transaction report” listed under your 1099-K. Gumroad describes it as a transaction-by-transaction breakdown of the form.
- Export your sales CSV. Gumroad’s Tax center FAQ says the Sales tab CSV includes a Fees column showing Gumroad’s fees (plus any Apple/Google in-app fees). If you use Stripe Connect or PayPal Connect, check the separate Stripe and PayPal fee columns.
- Export payout CSVs. The payouts dashboard lets you download a CSV for each paid-out period, showing total sales, deductions and net payout.
- Back out what isn’t your income. Starting from the 1099-K gross, subtract the sales tax/VAT Gumroad remitted, refunds, and fees. Keep the spreadsheet with your tax records.
- Add what’s missing. Sales through Stripe Connect or PayPal Connect aren’t on Gumroad’s form. Gumroad says you’ll need to get a separate 1099-K for those from Stripe or PayPal, and you must report that income either way.
- Fix real errors. If your name or TIN is wrong, the form was filed as an individual when it should have been a business, or the amount is wildly off, Gumroad asks you to contact support@gumroad.com so it can file a correction with its processor. The IRS says you should ask the issuer, not the IRS, and not wait to file your return.
Where U.S. sellers report Gumroad income
For most solo creators, the IRS says gig workers, freelancers, hobby sellers and other self-employed people should report Form 1099-K payment information on Schedule C (Form 1040), Profit or Loss from Business. That’s where you list gross receipts and then deduct business expenses, including platform fees.
Two other points from the IRS are worth knowing:
- No form doesn’t mean no tax. Both the IRS and Gumroad’s Tax center FAQ state that you must report all income even if you didn’t hit the 1099-K threshold.
- Self-employment tax may apply. The IRS self-employment tax page says you must pay SE tax and file Schedule SE if your net earnings from self-employment were $400 or more. The rate is 15.3% (12.4% Social Security plus 2.9% Medicare), and you may need to make quarterly estimated payments.
Because a tax bill on side income can arrive all at once, many sellers keep part of each payout in a separate account. If you don’t have a cash buffer yet, our guide on how much emergency fund you need is a sensible place to start.
What if you sell on Gumroad from the UK?
Gumroad states that the only tax information returns it issues are the U.S. forms above, and only for eligible U.S. sellers. It also says it does not file DAC7 reports. That doesn’t mean your income is invisible or untaxed, and Gumroad itself says this isn’t tax advice about what you need to file where you live.
For UK individuals, HMRC’s trading allowance guidance says you can get up to £1,000 of trading income tax-free each tax year. If your gross trading income is more than £1,000, you must register for Self Assessment (HMRC says by 5 October in the following tax year) and you can either deduct the £1,000 allowance or claim your actual expenses, but not both. Keep records of your income either way. Gumroad’s sales and payout CSVs are useful for that too.
Comparing platforms? Check how they handle tax
Tax handling differs a lot between platforms, so it’s worth comparing before you choose where to sell. See our breakdowns of Payhip fees (Free vs Plus vs Pro) and Etsy fees for digital downloads to see how the costs stack up against Gumroad’s 10% + $0.50.
FAQ
I made $25,000 on Gumroad from 150 sales. Will I get a 1099-K?
Based on Gumroad’s stated criteria, no. You must exceed both $20,000 and 200 transactions. You still have to report the income.
Does the 1099-K include my PayPal sales?
Not if they were processed through PayPal Connect or Stripe Connect. Gumroad says those are excluded and must be requested from the respective platform.
Should I report the 1099-K amount or my payouts?
The IRS says to use the form together with your own records. The gross amount isn’t adjusted for fees or refunds, and you can deduct those using your records. A qualified tax professional can confirm the right treatment for you.
When will my Gumroad 1099-K arrive?
Gumroad says it starts filing in January and the form typically reaches sellers from late January to March. Download it from the Tax center.
Do I get a 1099 as a Gumroad affiliate?
Gumroad says affiliates with more than $600 in commissions for the year receive a Form 1099-MISC rather than a 1099-K.
Disclaimer: This article is for general information only and is not tax, legal, or financial advice. Thresholds and platform policies can change. Check the linked official sources and speak to a qualified tax adviser about your own situation.