OfferUp partners with the payment processor Stripe to enable sellers to accept electronic payment methods when shipping. By using OfferUp to accept electronic payments, you agree to the Stripe Connected Account Agreement, which includes the Stripe Terms of Service (collectively, the "Stripe Services Agreement"). For more information, see the Stripe Services Agreement.
When using electronic payments, you may be asked to validate certain personal information. Learn more about how your personal data is used in electronic payments.
Tax reporting
Beginning in calendar year 2022, if you sell over $600 worth of items using OfferUp’s online payments for shipping, you'll be prompted in the OfferUp app to provide your full Social Security number and address to our payment processor (Stripe) for tax reporting purposes, per the Internal Revenue Service (IRS). You may see multiple requests for this information, and we will not release payments until your Social Security number and address are provided. Make sure you use the most current version of the app when you submit these details.
This requirement was introduced in the American Rescue Plan Act of 2021, a federal law that amended certain sections of the Internal Revenue Code to require payment processors, including our third party partner, Stripe, to report goods and services transactions made by customers with $600 or more in annual gross sales on Form 1099-K. This is an industry-wide change that applies to all payments processed by marketplaces.
If you meet this threshold, you will also receive a Form 1099-K produced by Stripe early in the year after you reach the reporting threshold. For example, if you sell over $600 in shipping items on OfferUp by July 2022, you will receive your Form 1099-K from Stripe in early 2023. OfferUp currently does not track sales where cash is exchanged or a different online payment method is used. Sellers need to self-track and report that income separately, and refer to tax professionals for advice. For more information, see Stripe Support.