amazon 1099 nec

Elmwood50
Elmwood50 Member Posts: 6 Newcomer
in Credits/Deductions

When, if ever, can amazon 1099 nec income be offset by COGS in same yeat

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  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 587

    Hi Elmwood,

    Are you doing delivery contracting for Amazon? If so, then you can't use cost of goods sold (COGS). COGS is used by a retailer who is either manufacturing a product or reselling purchased products.

    Would you share details about why you got a 1099-NEC from Amazon.

  • Elmwood50
    Elmwood50 Member Posts: 6 Newcomer

    Product reviewer who receives 1099 nec from amazon who writes off that income on Schedule C as cogs.

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 587

    Hello Elmwood50,

    So if you are purchasing items, then yes, I can see a COGS in your situation. On the Schedule C - Business Information page, answer YES that you have an inventory. Then continue and find the COGS section. You generally won't have a beginning or ending inventory, just purchases. Another option is to enter you purchases as a Miscellaneous Business Expense on the Common Expenses section as "Product Review Inventory" or something along those lines.

  • Elmwood50
    Elmwood50 Member Posts: 6 Newcomer

    I think Viners receive products for free. I think the 1099 nec is in-kind income for Viners' reviews. But maybe I'm wrong.

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