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.
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):
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.