Tax laws change every year and so do the thresholds. Under the first Trump administration, the threshold for annual sales revenue being reported to the IRS, was $20,000. Under the Biden administration, that was lowered to just $600. However for 2023, Congress suspended the $600 threshold and it remained at $20,000. For 2024, the threshold was $5,000. In 2025, it was $2,500.

For 2026 these thresholds changed back to $20,000 (when you have less than 200 transactions). 

When you sell on any major platform such as eBay, Etsy, Amazon etc. your money will be collected by them. They are required by law to report to the IRS any annual revenue by sellers that is over the threshold. This is also true for any payments you receive through a third party vendor such as PayPal, Venmo, Stripe, Square, and others. 

Remember, you still have to report the income even if under the thresholds, it is just that you won't receive 1099Ks from these companies, and they will not report your income to the IRS. 

Note that if you are not paid through these major platforms and instead receive cash payments directly from your buyers, those sales are not reported to the IRS. This does not mean you don't have to report and pay taxes on cash sales, but simply that those transactions are not reported. 

I am not a tax advisor, your CPA is the expert. They will be your authority for properly reporting revenue, expenses and filing your taxes for your online sales. 

Here are some helpful articles that will answer most of your questions about the constantly changing tax thresholds and your responsibilities. Some articles are eBay centric, but are still applicable to online sales using any platform. 

1. eBay & Form 1099-K

2. Demystifying the 1099-K Thresholds

3. Blog Tax Act

4. New 1099-K Rules

5. Selling Collectibles

6. Several Excellent Tax Articles