TaxWave works with online sellers to reconcile 1099-K income, identify every legitimate cost of goods and business expense, and resolve IRS balances that built up during growth years. Whether you're selling handmade goods, flipped merchandise, or dropshipped products, the tax treatment is specific to your business model — and TaxWave builds your return accordingly.
Why Online Sellers Professionals Face Self-Employment Tax
Self-employment income differs from W-2 income in one critical way: no employer withholds taxes on your behalf. Every dollar earned as an independent contractor, booth renter, platform worker, or freelancer is subject to the 15.3% self-employment tax in addition to ordinary income tax — and the full obligation is due on a quarterly schedule most new self-employed workers miss the first time.
When quarterly estimates are missed or business deductions go unclaimed, IRS balances compound quickly. TaxWave helps online sellers professionals stop that cycle: filing any delinquent returns, reclaiming missed deductions, and negotiating directly with the IRS for the best available resolution.
Tax Relief by Role
Amazon Sellers
Running an Amazon store — whether FBA, FBM, or wholesale — means managing inventory, logistics, and fees while trying to grow a business. The tax side catches many sellers off guard: 1099-K income is gross revenue, not profit, and calculating what you actually owe requires tracking cost of goods, FBA fees, prep costs, advertising, and returns. When that math isn't done right, IRS bills stack up fast.
Learn more →Etsy Sellers
Etsy sellers pour real skill and time into handmade goods, vintage finds, and digital downloads — and it's a genuine business, not a hobby. The tax reality is that Etsy issues a 1099-K when sales cross the reporting threshold, and that income is subject to both income tax and self-employment tax. Many sellers discover this only after their first profitable year.
Learn more →eBay Sellers
eBay sellers — whether flipping thrift finds, liquidating collections, or running full-scale resale operations — face a tax structure that turns on the difference between personal property and business inventory. Once eBay files a 1099-K in your name, the IRS is paying attention, and the distinction between casual selling and a resale business matters enormously.
Learn more →Shopify Store Owners
Building a Shopify store takes real work — product sourcing, marketing, customer service, fulfillment — and when it starts to earn, the tax obligations arrive without any withholding or reminders. Shopify doesn't issue 1099s the way marketplaces do, which means some store owners don't realize they've built a taxable business until they're years behind on filings.
Learn more →Walmart Marketplace Sellers
Selling on Walmart Marketplace gives you access to a massive customer base — but it also creates the same 1099-K reporting and SE tax obligations as any other marketplace. Sellers approved onto Walmart's platform are often experienced Amazon sellers diversifying channels, and they bring the same need for accurate COGS tracking, fee deductions, and quarterly planning.
Learn more →Resellers & Flippers
Reselling — buying undervalued goods and selling them for a profit through eBay, Facebook Marketplace, OfferUp, or local channels — is a real business that generates real taxable income. Flippers who source from thrift stores, estate sales, garage sales, or liquidation pallets are running a business whether or not they think of it that way, and the IRS treats it accordingly.
Learn more →Dropshippers
Dropshipping — selling products you don't physically stock by routing orders to suppliers — looks like a low-overhead business, but the tax structure is the same as any product seller. Revenue is gross sales, COGS is what you pay suppliers, and net profit is subject to SE tax. The disconnect between high revenue numbers and thin margins trips up dropshippers who estimate taxes on revenue rather than profit.
Learn more →Print-on-Demand Sellers
Print-on-demand selling — designing products on Printful, Printify, Merch by Amazon, Redbubble, or Teespring — is a scalable creative business with surprisingly complex tax treatment. Revenue arrives as royalties, sales income, or a combination, and the structure differs by platform. Many POD sellers don't realize their design income is self-employment income until the IRS sends a notice.
Learn more →Common Questions
Online selling sounds like passive income until tax season arrives and you realize no one withheld a dime. Marketplace sellers across Amazon, Etsy, eBay, Shopify, and Walmart deal with 1099-K reporting thresholds, inventory tracking, platform fees, and multi-state nexus — all of which create tax complexity most sellers aren't prepared for in their first few years. Because self-employment income arrives without any employer withholding, the full federal income tax and 15.3% self-employment tax obligation accumulates over the year. Without quarterly estimated payments, a single year of solid income can produce a large April bill — and without guidance, that balance compounds through penalties and interest.
Yes. TaxWave works with online sellers professionals to prepare any unfiled returns, apply every legitimate deduction, and negotiate the best available IRS resolution — whether that's an installment agreement, Offer in Compromise, penalty abatement, or Currently Not Collectible status. The process starts with a free consultation.
Self-employment tax is the Social Security and Medicare tax owed by self-employed workers — replacing the payroll taxes that an employer would otherwise split with a W-2 employee. The rate is 15.3% on net self-employment earnings up to the annual Social Security wage base (set by the SSA each year), and 2.9% above that. You deduct half of SE tax as an above-the-line deduction, which reduces your income tax — but the SE tax itself is owed regardless.