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Level 1
posted Oct 27, 2021 9:20:04 AM

1099-MISC from Amazon for Vine Program

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

1 4 10812
4 Replies
Employee Tax Expert
Oct 27, 2021 9:54:08 AM

Hello Meg08,

 

Since you are already filing a schedule C for the books you sell and this is an unrelated business or hobby, you would either need to file a second schedule C for product testing or file the 1099 as hobby income. Based on the below article you would need to go through the questions and see if this qualifies for a business or as a hobby.

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a-hobby/L5NClTTtK

Returning Member
Oct 27, 2021 9:57:13 AM

This other 1099 may also be considered as other income instead of hobby income.   Please read up on the differences between hobby income and other income.   

Level 2
Oct 30, 2022 10:03:12 AM

I have this question and did not find the answer about Amazon vine program. How much should i pay tax for this program?should i add this to my income?i am doing this work as fun and dont have any income from that and some time using my personal car to return the item back too.

may you help us to find our answer?

Employee Tax Expert
Nov 1, 2022 5:57:46 AM