Tik Tok has a program for.creators where different businesses, many of them in China, send free samples with free shipping to the creator, and the creator is required to make a video featuring the item within 7 days. It is my understanding from other creators that this is considered taxable income. I have looked.on the IRS website and found very ambiguous information and nothing pertaining to this specific situation.
I am planning ahead for my taxes and I'm not a business, but I need to know at what percentage I can be taxed, and if.it is.taxed.on the cost of the item plus shipping.ir just the cost of the item. Plus, the price is listed on the listing.of the item sometimes as "$14.99 -$25.99", for example. The shipping slip shows zero value on the receipt.
I understand that over $500 value (is that accrued items? Or one item $500) is taxable and if I remember right the IRS website said $100k or $150 k is considered a business.
I need some actual answers. I don't want any nasty surprises at the end of the year.
