Hello,
Perhaps this question is too specific to my situation, but I’m going to give it a try.
I am an author, self-employed, and have been filing self-employment tax for several years. The majority of my income comes from books I sell on Amazon, and that income is reported to me on a 1099-MISC from Amazon.
Earlier this year, I was invited to join Amazon’s Vine Program which if you’re unfamiliar, is a group of people who receive items free of charge in exchange for providing comprehensive and honest reviews. Once the estimated tax value of the items a Vine Member receives surpasses $600, a 1099-MISC is issued to that person by Amazon. I will surpass that amount this year, so will receive a 1099-MISC for the taxable value of the merchandise I’ve received.
Based on what I’ve learned from other Vine members I know only through an online forum, most people claim the amount on their 1099-MISC from Amazon for Vine products as “Hobby Income.”
My question is then, this: Since I already receive a 1099-MISC from Amazon for my author business, and will now receive another one for Vine, is it possible for me to claim the Vine portion as “Hobby Income” or is that going to raise all sorts of red flags being that the 1099s both come from Amazon?
Would it be better (or, for that matter, correct) to add the 1099 from Vine to my 1099 from the sale of my books and list the total of both as self-employment income?
Or, am I looking at this all wrong and there’s an entirely different way it should be handled. Any light you can shed on the situation would be greatly appreciated.
Thank you,
Meg
