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1099-NEC for non-cash earnings

Forum|Forum|3 years ago
January 26, 2023
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I am an Amazon Vine participant for the first time last year. I reviewed a bunch of products which are given to me at no cost with the stipulation that I would have to pay taxes on the value of the goods received. So AMazon sent me a 1099-NEC with the sum of the values on which to pay tax. My issue is that TurboTax is creating a Schedule C series of questions about Tax Ids, business addresses, number of employees(?) and the such. This is not a business, so I don't don't know if I am misdirecting the script or this is standard amd I should leave everything blank?

Best answer by DavidD66

You were performing a service for Amazon, and your compensation was the products you received. You were an independent contractor, which means for tax purposes you were self-employed (at least in regards to what you did for Amazon). Since you were self-employed, you must report your compensation, and any related expenses on Schedule C of your personal tax return. Your business address would be your personal address, unless you applied for a tax ID with the IRS, your "business" doesn't have one. And you probably don't have any employees. These questions are all standard, and may or may not apply to someone that is self-employed. If something doesn't apply to you, leave it blank and move on.

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DavidD66Answer

You were performing a service for Amazon, and your compensation was the products you received. You were an independent contractor, which means for tax purposes you were self-employed (at least in regards to what you did for Amazon). Since you were self-employed, you must report your compensation, and any related expenses on Schedule C of your personal tax return. Your business address would be your personal address, unless you applied for a tax ID with the IRS, your "business" doesn't have one. And you probably don't have any employees. These questions are all standard, and may or may not apply to someone that is self-employed. If something doesn't apply to you, leave it blank and move on.

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four2score

I also am a Amazon Vine member & have to file the 1099-NEC on my taxes for the first time. Can I use the Turbo Tax Deluxe that I already had ordered for this? I am a stay at home Mom who files jointly with my husband whom is employed & received a W2. The only deductions I would have towards the 1099 would be regular overhead, like a percentage of utilities. Will the Schedule C included with the Deluxe version allow me to deduct those?