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New Member

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

It's not a business (I make no money and never intended to; I just do it for fun). I receive products and write a reviews. The 1099 is Amazon's estimate for the fair market value of the products. TurboTax wants to put it as a small business with a crazy high tax burden because of social security, etc. Can it be added as a hobby instead? Thanks!
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Level 2

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

Yes.  If this is not a business, you are not engaged in the activity for a profit seeking venture and you consider it a hobby then you can treat it and list it as a hobby.  As a hobby any expenses involved with it would be used on itemized deductions if you can use that.  These expenses would be subject to a 2% reduction of the adjusted gross income (AGI) and only the excess would be added to your other itemized deductions.

The dollar amount and volume of time spent on this could be a factor in determining if you are engaged in this activity for profit.  The fact the value is for products, as you see from the Form 1099, as opposed to cash under the tax law Amazon is required to report it.  

  • To record hobby income in TurboTax Self Employed follow these steps.
    • My Account > Tools > Topic Search > Type hobby income > Go
    • Enter your hobby income and expense
    • Click the screenshots attached to view and enlarge for assistance.
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New Member

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

If someone receives free products for reviews it may indicate an increase in that person's wealth.  This is especially important if the total value of all the items receive sums up to a large amount.  If for example, the total value of all free items received is $10,000, then that amount could be considered Taxable for IRS purposes.  I think that the amount has to be greater than $600 to be considered.
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New Member

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

Do you still have to file it as a 1099-Misc if you file as a Hobby Income?
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New Member

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

What could possibly be "any actual expenses that are ordinary and necessary for you to receive and keep the products to the extent of the income value." I just started as an Amazon Vine reviewer, and I am looking ahead to see if I incur more than $600 in ETV, and I declare it as business income, what deductions can you take to reduce the income?

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Level 15

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

I don't see anything in IRS publications that would indicate any specific income limit for income to be from a hobby. You can see what the IRS looks at when determining whether income is from a business or a hobby using this link: https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

 

As of tax year 2018, expenses associated with hobby income are no longer deductible on your tax return. The previous deduction described in the first answer to this post was eliminated with the 2018 tax law. 

 

If you receive a 1099-MISC, you must enter it on your tax return.  How TurboTax will enter it depends on how you answer the questions in the interview. If they are hobby type answers, TurboTax will enter it as hobby income and it will be shown on line 21 of Schedule 1 and on line 6 of form 1040.

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New Member

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

If you treat it as a small business, you ought to be able to claim some business expenses. For instance, you wouldn't be able to do that review job without a computer of some sort. So depending on the age, you might be able to claim it's depreciation value.  The area of your house where you store the products, anything you buy in order to use the products (batteries, for instance, or gas for a lawnmower) count as a business expense.  If you bought a camera to take review photos, that is a business related expense.  The key is that it has to be something you bought just for that business of reviewing.  If you use the camera for family photos too, then you have to go through the 'what percent of the time is this used for work and for non work' and that gets pretty tedious to prove. Keep receipts. 


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Expert Alumni

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

A hobby is other income and the expenses quit being deductible in 2018. Here is the official IRS word, Tips for taxpayers who make money from a hobby

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New Member

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

Right. But if you get a 1099 MISC, they are already pushing you to count it as self employed. And those expenses still count. 

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Expert Alumni

I got a 1099-MISC for my hobby of reviewing products on Amazon. Do I have to put it in small business or can I put this in "uncommon income" as the hobby it is?

If it were a one-off, you might get away with other income, but you are doing this on a continuing basis. If you are going to do this and get paid for it, it is self-employment income.

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