Daughter rec'd 1099-NEC from Amazon for $15k for sales thru her storefront acct. She has $9k W-2 wages from different entity. Is this "hobby" or "business income"?

Daughter is under 25 and enrolled as full-time student. Her parents are filing MFJ and claim her as dependent.

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Daughter rec'd 1099-NEC from Amazon for $15k for sales thru her storefront acct. She has $9k W-2 wages from different entity. Is this "hobby" or "business income"?

Sounds like business.

If she produced a product and sold it on Amazon, yes that is a business.

If she purchased products to sell on Amazon, yes that is a business.

If she unloaded used items (not sure if that is even possible) through Amazon, like a "Garage Sale" it could be a hobby or simply a sale of personal items.

It does not matter that she is your dependent.

A student can have a million dollar business, but if the student puts that income into savings, it would not count as supplying their own support, so the student would still be a dependent.

Sounds like your daughter is quite the enterprising person. Congratulations, it should not interfere with you claiming her as long as she does not supply more than half her own support.

She will need to file Schedule C as a Self-Employed Taxpayer if this is a business (and it sounds like it is)

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Daughter rec'd 1099-NEC from Amazon for $15k for sales thru her storefront acct. She has $9k W-2 wages from different entity. Is this "hobby" or "business income"?

Sounds like business.

If she produced a product and sold it on Amazon, yes that is a business.

If she purchased products to sell on Amazon, yes that is a business.

If she unloaded used items (not sure if that is even possible) through Amazon, like a "Garage Sale" it could be a hobby or simply a sale of personal items.

It does not matter that she is your dependent.

A student can have a million dollar business, but if the student puts that income into savings, it would not count as supplying their own support, so the student would still be a dependent.

Sounds like your daughter is quite the enterprising person. Congratulations, it should not interfere with you claiming her as long as she does not supply more than half her own support.

She will need to file Schedule C as a Self-Employed Taxpayer if this is a business (and it sounds like it is)

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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