Thank you so much for your insight !- I have concluded the same; either the income is a hobby or a business. I am leaning on filing it under hobby - BUT my amount in box 1 was a fraction of Rose's amount.
In an effort to get some reassurance for myself I called the IRS and spoke with six different reps over a 2 hour period and to quote what the rep told me when I asked about whether it is a hobby or business "I can't decide that for you, wish I had better information for you, that is a gray area" - so basically same as what you said.
The next question I asked was IF I claim the income as SE income then, since I'm 'self employed' can I pay myself and deduct my pay from the income reported in box 1 of the NEC - I thought the answer would be a simple YES - but to make a very long story short she said "That is not a question for the IRS"
She ultimately said "it sounds to me that it's possibly a hobby, but then you can not deduct expenses"
I mentioned that I had seen some Vine members online that had over $30,000 dollars in 'income' - she then said 'that does not sound like a hobby'.-
These questions are for me AND Rose -
1. If we report the income as self employment income can we PAY ourselves, and then deduct our pay from the amount in box 1 of the NEC?
2. Could we make record keeping it SUPER simple and pay ourself per order? I came up with the figure 15$ per order. (below in italics is SOME of what goes into a review) As a 'business' I know you are required to keep 'records'. I had MANY thoughts - pay myself as a writer, a writer would get paid per word so I would have to record how many words in a review, I could count the number of photos I have taken? That way would be a job in and of itself. I know Rose nor I have kept track of the hours we have spent 'looking' for an item to review, selecting the item to review, unwrapping, recycling the packaging, taking photos, testing the item, possibly installing the item, uploading the review and uploading the photos, re-submitting reviews. I asked the IRS about record keeping and their reply was ambiguous.
3. Does claiming the income as SE income make me a business?
BECAUSE: – IAW Amazon’s policy: “Participation as a Voice by businesses or organization is strictly prohibited.” – Why would Amazon send something out (1099-NEC) that would disqualify you from being a member?
Opus17- thank you for your time I know it takes effort to answer a post, insert links and SHARE your knowledge. I for one am grateful!
