- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
1. No, you can't pay yourself a salary and deduct it as an expense.
2. If you had expenses, they would be ordinary and necessary expenses for doing the work. Since you can't pay yourself a salary, that's irrelevant. Your expenses might be a portion of your computer cost and internet connection, if you keep a record or log of your online activity so you can determine what portion of your activity is business related. I'm hard pressed to think of other expenses for this type of work.
3. That's up to Amazon.
Also, understand that even if it was possible to pay yourself a salary and deduct the expense from the business, you then must give yourself a W-2, you must deduct and pay social security and medicare tax (like any other W-2) and report the salary on your tax return and pay taxes (like any other W-2). (This is how a small business operates if it forms itself as an S-corporation.) You would pay the same or more tax in the end.