I have additional income from Amazon Affiliates, however I am not established as a company. Am I able to write off expenses associate with this income?

[andrewbareham]

I am uncertain if expenses associated with earning amazon affiliates income can be written off. These costs are not associated with an LLC or Sole Proprietorship, so I'm unsure if this classifies as hobby income / expenses or can be written off.

[Patrice]

Yes, you can write off the business expenses for your Amazon Affiliate income.  If your received a Form 1099-MISC that shows an amount in Box 7 for nonemployee compensation or a 1099-K and it’s because you did consulting work or other services for someone or a company, based on IRS regulation, you DO now "have a business!" You’re in the business of consulting and the IRS views you as a "company", and you have to file Schedule C to report that 1099-MISC income. The Schedule C is located in TurboTax Self-Employed version. This is a requirement, not an option!

The good thing about filing Schedule C is the ability to apply any expenses you incurred while performing those services.

Amazon Affiliates income is considered self-employment income and you have to complete a Schedule C which is found in TurboTax Home and Business (desktop) or TurboTax Self-Employed (online).

To enter this in TurboTax Self-Employed (online) or TurboTax Home & Business (desktop):

• Start under the Business tab
• How do you want to enter your business income?, then I'll choose what I work on
• In the "Business Income and Expenses" section, next to "Profit or Loss from Business", click Start or Update
• The next screen will ask "Did you have any income and expenses for a business in 2016?". Answer Yes.
• Follow the interview until you reach "Let's confirm your business info". Verify everything is accurate, then Continue
• Enter Business Information, click Continue (Your business name would be your personal name and your business address would be your mailing/personal address)
• Tell us about your business, click Continue
• Enter Employer ID Number, If Any, click Continue
• Do you use the cash method of accounting to run your business?, click Continue
• Did you make any payments that required you to issue a form 1099?, click Continue
• Do any of these uncommon situations apply to your business?, click Continue
• Let's confirm your business info, click Continue
• Your Business page
• Go to Business Income
• Business Income, then Click Start.
• General Income, click Start
• Tell us about additional income (Please note: it states Make sure to include any income reported on Form 1099-K and income from a barter or exchange)
• Type in your description,  click Continue

[CuriousGeorge1]

Hi TurboTaxPatrice, thanks for the helpful answer. Should you follow the same procedure if you have a negligible amount of income? For example, suppose I have $20 of Amazon Affiliate Income. How should I report it?

In this case, I obviously did not get a 1099-MISC or a 1099-K.