Amazon Vine receiving less than $600/$400

[DukToonz]

Hello, I hope someone can help me with this as I’ve seen a great deal of conjecture on the internet with no hard facts. I’m a new Amazon Vine reviewer and have received $280 worth of goods for review this year. This amount *will not* trigger any 1099 forms from Amazon, but I understand I am still required to report this as income on my taxes. 

My question is am I permitted to report this amount on my 1040 as “Other Income” (1099-MISC) or am I required to pretend I received form 1099-NEC from Amazon and proceed with (what I assume will be Schedule C and..) the Self-Employment software?

The reason I ask is the cost of the top tier TurboTax software is *considerably* higher if I must report it as though I received the 1099-NEC.  Essentially, after fees and taxes, that $280 of “free” items I received from Amazon will end up costing me $270.

Any direction or assistance anyone can provide, I’d greatly appreciate. Thank you all in advance for your time. 

[rjs · Accepted solution]

You don't have to pretend that you got a 1099-NEC. You report it on Schedule C as income that was not reported on a 1099-NEC or 1099-MISC.

You didn't say whether you use TurboTax Online or the CD/Download TurboTax software. In TurboTax Online you do not need the "top tier" software if you do not have any business expenses to deduct. You can use whatever version you would otherwise use (except Free Edition). With the CD/Download software you can use any version, even if you do have business expenses.

While Schedule C is the correct way to report it, the fact is that if you report it as other income the IRS is not going to bother you about it as long as the amount is less than $400.

In any case, do not make up a 1099-NEC or 1099-MISC that you did not actually receive. You can report business income or other income without a 1099-NEC or 1099-MISC.

[DukToonz]

Sorry, yes I am using the TurboTax online software. And no, I have no expenses (business or otherwise) to deduct.

This will be the first and only time I will be claiming this income as I am unsubscribing from the Vine Program at the end of the year if not sooner. I had no idea how involved (read: expensive) it could be out of pocket. 

Thank you so much for responding! I think I will proceed with claiming the $280 as “Other Income” and obliviously try not create documents that don’t exist.  heheh

If I claim it as Other Income, do you know if I can proceed with the Free Online Software or will I need to upgrade to Deluxe or something else?

[SoManyForms]

I am also a Vine member but stayed under the $600.  Since a form will not be generated from Amazon, do I actually have to claim this?

[rjs]

@SoManyForms  Yes, you are required to report all your income on your tax return, whether or not you get a 1099 form for it.