Amazon Vine Reviewer, received a 1099-NEC

[Yshtola]

I got a notification from Amazon this morning about them sending me a 1099 because for 2025 I had $604.10 worth of products I reviewed.
I am clueless on how to proceed with this.
I have no monetary income.
The Vine products I got, most are just some household items. 
Some of it is junk that gets tossed in the trash.
I haven't filed taxes in 20 years because, no job, been attempting to get disability for numerous issues in this time.
I started using Vine just to get some stuff that could be helpful where I live. Soap dispensers, a small cabinet, a bath mat or shower curtain. Things like this. 
I don't believe it should be counted as income because I'm not reselling it, as a lot of Vine reviewers do.

So it's not a business to me, how could it be when I'm not selling the products? And from Google it says I'm not able to deduct expenses. 
But I have no money to pay these taxes that I supposedly owe. Which seemingly are $92.

I was told that expenses could include internet. At best that might be $20? Not even sure it'd be 10% of monthly usage, more than likely closer to 5%, which is minimal. No trash pickup or disposal fees. I use a computer to write the reviews, but the computer is over 6 years old at this point. I didn't buy or pay anything on it in 2025.
Help figuring out the situation would be appreciated. 

[PatriciaV]

Amazon sends you a 1099-NEC because it's required by the IRS.  

When you review the items, you are providing a service in exchange for something of value. 

This is "compensation" (or "work") under US tax law, and that is why you're taxed on the income the same as any other contract worker. Tax law doesn't distinguish much between cash and non-cash compensation. It doesn't matter if Amazon or another party funds that compensation. In the end, you are the person being compensated and that compensation is taxable.

That said, there is a way for 1099-NEC income to be treated as "Hobby Income" if the income is not for work, but rather a hobby. 

Here are the instructions for entering the 1099-NEC so that it shows as hobby income: 

Open your return and go to Federal >> Wages & Income >> Other Common Income >> Income from Form 1099-NEC. Click Start/Update.

Or go to Tax Tools >> Tools >> Topic Search. Enter 1099-nec then click Go.

1. On the screen Did you get a 1099-NEC?, click on Yes
2. On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC
3. On the screen Let's get the info from your 1099-NEC, enter your information and click Continue
4. On the screen Describe the reason for this 1099-NEC, enter a reason and click Continue
5. On the screen Does one of these uncommon situations apply? Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby and click Continue.

These entries will report the income on Schedule 1 Line 8z Other Income. The total from Schedule 1 Line 10 flows to Form 1040 Line 8 as ordinary income.

Be aware that if the 1099-NEC is reported as Hobby Income the IRS might look at your return more closely. Here is how the IRS describes a hobby. 

Reporting the income as a hobby means you will pay Income tax, but not Self-Employment Tax on that income. Prior to 2018, taxpayers were able to deduct hobby expenses (not more than the income) if the taxpayers used the itemized deduction. The Tax Cuts and Jobs Act eliminated itemized miscellaneous deductions, including hobby losses, until after the 2025 tax year. (i.e., Hobby expenses are not deductible from 2018 to 2025.)

You might want to consider whether the tax obligations and reporting responsibilities are worth the value of program participation. 

[Yshtola]

Well the income is $0, I don't typically file. So as hobby, it would go under Schedule 1- 8J, correct?
So the AGI is only $604.10, as there is nothing else to put.
And then I wouldn't owe anything at all because I am under my state's limit, which I believe is $11,950 for an individual.

Looking at your page on the factors of whether it's a business.
1. I don't maintain books or records at all. The only info I have is whatever is shown on Vine itself in my history. Which is also subject to change at any time, as some of the items for 2025 are delisted on Amazon now and no longer available at all. Even to view or look at.

2. I don't put any more time or effort than necessary. I put in a basic review randomly within a few days or weeks after receiving the product.

3. I don't depend on it for livelihood or anything, since there is no revenue.

4. It's not really relaxing, it's most just to get some items that might be useful where I live (ie, a soap dispenser)

5. Nothing to fund the activity. I'm using an old PC to do it, and a home internet via a free hotspot from the phone my Medicaid insurance qualifies for.

6. I don't have any profit or loss, I would think. There is no revenue.

7. I don't do anything differently than I ever have. I randomly check Vine when I think about it. Get something that looks interesting. Nothing scheduled or on a fixed timetable.

8. I doubt I have the knowledge to carry this out as a business.

9. Never made a profit doing it, because I don't sell it for cash. Unless items themselves count as a profit? I'm not sure how this would work. 

10. I don't expect any of this stuff to gain in value. It's either bad items that weren't worth the ETV to begin with, or it's items that'd be used until they are ready to be discarded.

[ThomasM125]

It is possible that the IRS would consider this a business since you indicated that you do it to get "Stuff that is helpful" evidently. The value of what you receive is treated as income, even though you do not receive cash. Since the value of what you received is more than the associated costs you incurred, you likely do have a business profit that would be subject to self-employment tax.

It is possible that the value of the goods listed on the Form 1099-Nec is more than their true value, so you may be able to enter a deduction for that difference. Use the "other" cost of goods sold category in TurboTax to reduce the self-employment income if appropriate. If you enter that expense in the inventory section when you enter your business expenses, and the amount reduces your gross profit below $400, then you will not be subject to self-employment tax. If you choose this option, look for Inventory/Cost of Goods Sold in the list of business expenses and enter $0 for the value of your beginning and ending inventory. 

[Yshtola]

I'm not sure what any of that means, to be honest. As said, I haven't touched taxes in 20 years.
I know some of the stuff seems inflated in price.

One $49.99 item has a coupon on it for $39.99.
One $29.99 item doesn't even exist on Amazon anymore. Wouldn't that mean the value would be off? Since they aren't even made/sold anymore, likely due to the fact it was a bad product.
One product is listed on my end as $38.99, but it's being sold on Amazon for $25 because it was another bad product, and I assume they lowered the price because of that.
Another's ETV was $39.99, now the typical price striked out is $31.49 and Amazon is selling it for $29.99

But no, regardless of anything else, this is nothing but a hobby. 

[Vanessa A]

The value would be the "regular" price when it was available for sale.  So the item that has a coupon for it, that is a sale price, you would still use the $49,99.  The one that doesn't exist anymore, it would be $29.99 because you would use the value of when it did exist. 

So the price you would use would be the price on the date you received it.  

Since this is nothing more than a hobby, then you would simply report the 1099-NEC as hobby income.  You will not receive any deductions for it, but you also will not have to pay the 15.3% Self-Employment taxes. 

[Yshtola]

Thank you, Vanessa.
So to file it as a hobby, I would use the Schedule 1 1040 form? The line 8J as I was told elsewhere?

[PatriciaV]

Yes, to report this as hobby income, follow the instructions posted earlier. Be sure to indicate "This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby".

[Renigma]

You don't have to file your Amazon Vine 1099 NEC as self employment or a Business.  You will file it under "other income", hobby income.  Now keep in mind, when filing as Hobby income, you can NOT claim expenses.  But your 1099 NEC total is so low, you said just over $600, correct?  You shouldn't feel a tax hit with that small amount.  I've been in the Vine program going on 4 years now.  Ive always filled it under "Hobby income", as its not a business, I don't deduct any expenses, I make no money from the products I receive, Amazon forbids us Viners from selling any item for the 1st 6 months we own it.  And that 6 months starts with the date you requested the item.  You will have to file because Amazon is legally obligated by the IRS to report a 1099 NEC on every one of us Vine reviewers.  You may have some Viners tell you that you have to file it under SE.  Thats not true. Its perfectly legal to file as hobby income.  You're not receiving any "money" from Amazon, although the IRS does consider the products we received, as compensation.  Although its Non Employee Compensation.  I am not a tax professional nor am I a lawyer, so I can't give you professional or legal advice, but I can let you know that its perfectly legal to file your 1099 NEC from Amazon Vine, under Hobby income.  I hope this helps you out a little.  Just remember, when filing as "Other Income", Hobby income " you can't make any deductions or expense your Internet usage.  If you start claiming expenses, then its a business or self employment.  Good luck. 

[Yshtola]

Honestly I had asked this via the AARP tax help thing, and they simply told me I'm not required to file at all.
I went to the IRS page about "do I have to file" and it said the same, that I don't have to.
Since it was below $15k.

[RobertB4444]

That is correct for regular earnings.  

Self-employment earnings, however, require that you file a tax return if your net income is $400 or more.  In your case your NET earnings should be below $400 so I still wouldn't file a tax return if the $600 from Amazon is the only income that you received.  

[Renigma]

Also, be prepared to see those ETV's , FMV prices change.  Its not fair, trust me I get it.  I was just reviewing my 2025 final Totals from the form Amazon sends us (electronically, you'll find it under the "Account" tab on your Vine page. Scroll down to thr bottom of the page and you'll see the "update or view Tax questionnaire". Click on that and you'll see your 2025 form which you can download in PDF format if you choose, and that form Will be an itemized list of every item you received, the order #, and the FMV of that item.  At the bottom you'll find your totals for the 2025 year, which should equal to your $604 (whatever number you mentioned).  Example of ETV's being different -  I requested a $59.99 item last year, ETV was $59.99, at the time of order and the time I received it.  That same item is still listed for $59.99 on Amazon shopping. Has always been $59.99 on Amazon, But, on my downloaded form with the FMV Totals, they hit me with a $129.99 for the exact same item that was $59.99 at time of order and time of shipping and is the price currently listed on Amazon for the consumer. So im paying taxes on the $129.99 price, not the $59.99.  It doesn't seem fair, but it's what we agreed to when we accepted the invitation into the program.  And because Vine does not make any adjustments for us in these cases, im mot going to bother going through 180 items checking the FMV, as it won't do me any good.  We are stuck with it.  If you choose to stay in the program, you can always look for items with a $0 ETV.  They are rare, but you can find them, particularly in the food or healthcare categories.