Get your taxes done using TurboTax

First and foremost, please be aware that we are tax experts and we are here to assist you by providing tax advice. 

Tax advice is just that, sharing how we interpret tax laws so that you, the consumer, don't get a letter from the IRS. 

With that said, the IRS created Form 1099-NEC a couple years ago. Before that, payments were lumped into Form 1099-MISC which covered Self-Employment as well as a whole array of other type of payments. The IRS wants income that conforms to being treated as Self-Employment CLEAR, so payers, such as Amazon, are instructed to use Form 1099-NEC (Non-Employee Compensation) for payments made to Sub-Contractors. These are payments that are considered Self-Employment compensation, paid to "non-employees". 

Mistakes happen and income could be reported incorrectly by the Payer, so there is a way for a 1099-NEC to be treated as "Hobby Income" if the income is not for work, but rather a hobby. 

Instructions for entering the 1099-NEC so that it shows as hobby income is listed below. 

This will put it on Schedule 1 as you requested above. 

Be aware that if the 1099-NEC is reported as Hobby Income the IRS might look at your return more closely. 

Here is how the IRS describes a hobby. 

Reporting the income as a hobby means you will pay Income tax, but not Self-Employment Tax on that income. 

There is no legitimate "Adjustment", such as depreciation, that you can make to the income if you report it as Hobby Income rather than Self-Employment, it just isn't in the tax code. Only a Self-Employed Taxpayer can use expenses and depreciation. 

You might want to think about whether reviewing products for Amazon is worth the hassle. 

1. Wages & Income 
2. Other Common Income (BELOW Self-Employment NOT IN THE SELF-EMPLOYMENT SECTION)
3. Form 1099-NEC    Start
4. Add 1099-NEC 
5. Enter the 1099-NEC
6. Select “This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby
7. DONE