1099NEC

Forum|Forum|2 years ago
April 8, 2024
1 reply
7 views

Hi, after reviewing all Qs and answers, I still am unsure which way saves on taxes, filing amazon-vine as a hobby or as self employment income.

Not A Product Question

Bsch4477

Level 15

Read the discussion here.

https://ttlc.intuit.com/community/taxes/discussion/amazon-vine-1099-nec-how-do-i-report-income-and-adjustments-on-turbo-tax/00/3138652?relatedcontent=1732031#:~:text=%22If%20you're%20not%20an,1040)%2C%20Itemized%20Deductions.%22&text=(on%20Schedule%201%20(Form%201040,%22

ThomasM125

Level 15

You don't have a choice with respect to treating your activity as a hobby or business with the goal of saving on taxes. It either is a hobby or a business. A hobby is an activity engaged in without a profit motive, one in which you typically don't earn a profit and do not devote a significant amount of time and energy on it.

A business is an activity engaged in in a professional manner to earn a profit and one in which you devote a significant amount of time and energy. By default, you would expect a business to earn a profit in at least three out of the past five years, or it will likely be considered a hobby by the IRS.

You can see this article for more clarity: Hobby or Business?

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