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1099NEC

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.

 

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2 Replies
ThomasM125
Expert Alumni

1099NEC

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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