en,When, if ever, can Vine product reviewers deduct Amazon 1099 nec income using COGS in USA??
When, if ever, can Vine product reviewers deduct Amazon 1099 nec income using COGS in USA?
Answers
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Thank you for joining our community, Elmwood50
We have been seeing a rash of these types of small businesses this year. You are able to claim the 1099-NEC Income on a Schedule C. Since your income matches the product that you have to purchase to review, you can enter the matching expense to the income in the Supplies box that is part of the Operating Expenses within the Common Expense page in the Schedule C screens.
The Schedule C inventory screens will produce the expense called Cost of Goods Sold and is also an appropriate place to enter your product purchase. This is a little more complicated, but it can produce the same expense as the Supplies described above.
Claiming the Supplies or Cost of Goods Sold expense matches the income that you have to report on your tax return. This creates a $0 profit and will not raise your total income on your tax return.
If you have further questions, do not hesitate to contact our Support team by accessing your Support Center located in the upper right-hand corner of your account screen.
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My understanding is that the Amazon Vine product receipt says $0. It includes an estimated tax amount (ETA) for the value of the product. My understanding is that the product is free in exchange for the review.
Am I wrong? Don't I need receipts to show cogs?
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I should have written estimated tax value (ETV), not ETA.
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Thank you for this reply,
Making sure you have the right information about how to report this business activity is important to us. To keep your information secure, please contact Customer Support directly using options in your Support Center either by email or by upgrading to Deluxe or Pro Support.
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