Amazon Vine 1099-NEC report as hobby

[TamJim1]

I received a 1099-NEC from Amazon for Amazon Vine reviews. This is not compensation and I reported as hobby income, but the tax return simply says "Nonemployee compensation from 1099-NEC Income" on Schedule 1. Turbotax online version does not provide an option to select “This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby". How do I specify Amazon Vine review 1099-NEC as a hobby?  I don't want the IRS to confuse with as income.

[RobertB4444 · Accepted solution]

Don't enter it as a 1099-NEC.  Delete that entry and then scroll all the way down to the bottom of the 'Wages and Income' section to 'Miscellaneous Income.'  Once you click on that click on 'Hobby Income and Expenses' on the next screen and enter the information there.

@TamJim1 

[TamJim1]

That worked. Thank you for your help. 🙂

[maguinaga]

Are we sure this is the best way to go about it? I'm not an expert, just want to avoid raising any flags on my return. Last year I filed my vine income as 1099-NEC Self Employment with no expenses. Is it better to do it as a hobby? I heard filing as a hobby causes the IRS to take a closer look at your returns.

[AmyC · Accepted solution]

There are no hobby deductions allowed currently so that is a safe way to sail through if you are not a steady - profitable every year -business. I would recommend you enter it as an NEC since the IRS saw that on your return last year. You can continue the business or switch to hobby.

To enter it as a hobby, follow these steps:

1. Open your return to the federal income section.
2. Locate income from Form 1099-NEC
3. Start/ Edit/ Revisit/ Review
4. Select Yes to did you receive NEC
5. Select add a 1099 -NEC or edit
6. Enter payer, id, and compensation
7. Continue
8. Reason for NEC -hobby income
9. Continue
10. Uncommon Situation - select not money as employee or self-employed. Sporadic activity
11. Continue
12. Done

@maguinaga 

[maguinaga]

I will try this, thanks Amy!

[Becky001]

I am really confused by this.  So are you saying to enter it as 1099-MISC?  Or as Other Income that was not reported on a W2 or 1099?  I feel like both of these would be wrong, as Amazon sends out 1099-NEC.  None of these things seem to be working for me.

[SusanY1]

You will need to enter it as a 1099-NEC.  For most participants in Vine, this is going to be self-employment income subject to self-employment tax because you are performing a service (writing reviews) in exchange for compensation (the items, which have been assigned values.)  

If you wish to report it instead as a hobby and feel that you're qualified to do so, you will need to enter the 1099-NEC and then on the follow-up screen select "This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby."  
 

[Becky001]

Thanks for the reply, the problem I'm having is that it doesn't get to the point of asking that question.  Once I enter in the info from the 1099-NEC it's done, and it goes back to the Income and Expenses page.  I'm using the online TurboTax Premium.  Maybe it's different.

[MonikaK1]

When you enter a Form 1099-NEC in the section named for it, rather than directly as business income, TurboTax asks if one of several non-business options applies. See screenshot below:

If you choose one of the non-business options, the program will just add the income separately and not add it to business income.

If instead, you choose "None of these apply to me", the follow up screen asks you to add a business or choose an existing business to which to add the income. See screenshot below:

@Becky001