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Taxes and Amazon Affiliate

Discussion in 'Business & Tax Advice' started by beastrampage, Jan 30, 2017.

  1. beastrampage

    beastrampage Newbie

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    So this year i have probably made around 900 from amazon affiliate.

    I have spent probably around 700$ due to paying for content and hosting and other things.

    Anyone have any idea how taxes work with it? I'm in the U.S .

    I looked around online but pretty much no information on amazon affiliates and how to do taxes.
     
  2. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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  3. beastrampage

    beastrampage Newbie

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    Thank you!
     
  4. beastrampage

    beastrampage Newbie

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    Just read both of those. On one of the lines "You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the https://www.irs.gov/pub/irs-pdf/i1040gi.pdf (PDF)."

    Assuming I could add more cost such as internet service which would give me negative earnings. Does that mean I don't have to file an income tax report? Or does that mean that I HAVE to deduct the net loss on the 1040? I guess how exactly do i show proof that I had negative earnings.
     
  5. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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    I just noticed that part in your OP about your $700 in expenses.

    I would file it regardless. If you don't file it, the IRS would receive the 1099-MISC form from Amazon and assume you made $900 in profit; they wouldn't know that you had $700+ in expenses.

    At least if you file your taxes, the IRS would have on record that you were at a loss.

    If you're feeling anxious about filing your taxes for whatever reason, just use Schedule C-EZ, Form 1040-EZ, and Schedule SE. The EZ forms are simplified versions of the tax forms usually used by people who have less than $5,000 in expenses. I used to use the EZ forms myself before my expenses went up as my business' income increased.
     
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  6. beastrampage

    beastrampage Newbie

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    Thank you I got it now. Thanks for guiding me in the right direction!!! I really appreciate it.
     
  7. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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    Yeah, no problem! :)