The short version: ReRack handles sales tax on the sale, Stripe handles the reporting form if you cross a threshold, and what you personally owe on your proceeds is a question for a tax professional.
This page is information, not tax advice. Nobody at ReRack is an accountant, and we will never tell you whether you owe tax — getting that wrong for someone does real harm.
Where sales tax applies to a marketplace sale, ReRack is the marketplace facilitator: we collect it from the buyer and remit it to the state. You do not collect or remit sales tax on ReRack sales. It never comes out of your proceeds.
Where it applies, it appears as its own line on the checkout review screen before the buyer pays, charged on top of the item price and the shipping. Whether it applies at all depends on where the ball is going — we collect it only in states where ReRack is registered, so plenty of orders carry no tax line and that is not an oversight.
Your payout does not move with it. The tax is the buyer's money passing through us on its way to a state; it is never taken out of your proceeds, and the payout figure you were shown when you set your price is the one you receive.
Stripe — not ReRack — issues a Form 1099-K to sellers who cross the federal reporting threshold, currently more than $20,000 in gross payments and more than 200 transactions in a year. Both conditions, not either. Some states set lower thresholds and Stripe applies those automatically, so a seller in one of those states may receive a form they weren't expecting.
The figure on a 1099-K is gross, and it is not your income. It is the total processed before commission, before shipping, and before refunds. Your actual taxable amount is a different number, worked out from your own records — which is the single most misunderstood thing about these forms.
Most ReRack sellers will never see one. Someone selling a few balls a year is nowhere near it; a busy pro shop might not be.
Proceeds from selling equipment may be taxable income, and that is true whether or not a 1099-K is issued — a form is a report, not the thing that creates the obligation.
Selling personal property at a loss is generally not taxable, and generally not deductible either. Whether that describes your situation depends on what you paid, what you sold it for, and whether you're running a business — none of which we know.
Talk to a tax professional. We can tell you what we did; we cannot tell you what you owe.
Your ReRack order history shows every sale, its price, its shipping, and the payout you received. Stripe's dashboard shows every transfer to your bank. Between them that is most of what a tax professional will ask for.
Worth keeping alongside it: what you originally paid for the ball, and any pro shop work you paid for. Neither of those is anything ReRack can know.
A running year-to-date sales total in your seller dashboard is on the roadmap and isn't built yet — for now, your order history is the record.
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