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Navigating the Amazon Vine Program and Taxes: What I Learned and How You Can Help Yourself.
As an Amazon Vine reviewer, we are unfortunately faced with the unwelcomed and perplexing task of navigating your tax obligations when you signed up for the FREE promise of products.
Allow me to share my experience with this complex matter, skipping over-complicated terms and boring explanations.
As a Vine reviewer, I understand the frustration of navigating the world of taxes when you never signed up to deal with this problem.
I only learned about a potential tax obligation after I signed up to gain access to the program, and I was still confused about how I would generate any such tax as no helpful information was present.
In a previous video, I shared my experience with an Amazon Vine program and the annoyance it was causing when it came to paying taxes.
I spoke to multiple CPAs and accountants, all of whom were confused by the program and ultimately stated that I would be required to pay taxes on the free products I received only because of the tax form they provided me.
However, when I reached out to the IRS directly, I was given completely different answers.
This opened my eyes to understanding the tax rules are not black and white; there is a lot of purple.
I spent over 1 hour on the phone with many IRS agents, and this led me to connect with an agent in an underwriting department.
After educating the agent on the Vine program and how it worked, I finally had a solution that was in line with IRS tax rules for one of the issues I was facing with my 1099 via Amazon Vine.
If you request a corrected 1099 form from Amazon and they do not provide one, you are able to zero out the income for those taxes. While this may sound strange, it is a valid solution, according to the IRS.
This is only something the IRS can instruct you to do (per my knowledge) after speaking with them about the incorrect 1099.
Now, this solution may not apply to everyone, and that's okay. The important thing is to educate yourself on your individual tax situation and find a solution that works for you.
Here are some key points to keep in mind when dealing with taxes as a Vine reviewer
1. Understand your status as a Vine Reviewer.
When you sign up for the Amazon Vine program as a shopper, Amazon does some trickery by issuing Viners a 1099 NEC form that automatically categorizes you as an Independent Contractor. (Remember the purple area I mentioned)
This means that you are not an employee of Amazon and are responsible for reporting your own income and paying any applicable taxes.
However, you can fight back against this and make your case with the IRS (maybe your state as well) since Viners are never told or signed any sort of contract agreeing to be one.
Again, getting educated or having a tax professional will be helpful in dealing with this.
2. Know what is considered income. A universal understanding is if an independent contractor works with a brand that decides to give you products in exchange for a service, this will be considered income.
However, depending on the tax professional that you have, this may not run true. ( again, purple area)
For example If I partnered with Disney and they wanted me to review a line of their princess dolls and offered me compensation in the amount of $500, it would be standard for the company to also supply you with the product so you can complete the job.
Now, depending on who your tax professional is, they may, in turn, dictate that that free product is also a form of compensation.
However, if you have another tax professional, they may look at that product as a free item because your compensation is the $500 you both agreed upon.
You see how depending upon the circumstances of that interaction dictate how you can proceed with claiming or ignoring that product as income.
Now, in terms of being a Vine reviewer, there is no requirement for anyone to review the products received.
Before joining the Vine Program, I reviewed Amazon products at my leisure, and I still do that as a Vine reviewer.
I was never told by Amazon I needed to review anything; however, Amazon requires you to remain inside this exclusive program of reviewing 100 products (updated 1/1/2024 to 80 products) and 90% of your orders.
Is Amazon Vine considered a service?
Some may say yes, and some may say no.
Many programs and clubs have requirements that people must fulfill in order to remain a member.
Would that be considered a service?
What is true is you are likely to be removed from the program if you are not fulfilling the program's requirements, but it is always 100% your choice to review any product or not.
4. Consult with a certified professional. Every individual's tax situation is unique, and what may work for one person may not work for another.
It's important to consult with a certified professional, such as a CPA or accountant, to get personalized advice tailored to your specific situation.
5. Take advantage of online resources. In addition to consulting with a professional, you can also utilize online resources such as Turbo Tax to get answers to your tax questions.
These resources often link directly to the IRS website and can provide accurate and up-to-date information.
In conclusion, paying taxes as a Vine reviewer can be complicated and confusing.
However, by educating yourself, consulting with professionals, and utilizing available resources, you can find a solution that works for you.
Remember, every situation is different, and there is no one-size-fits-all solution. So, take the time to figure out what works best for you and stay informed on any changes or updates to tax laws.
With a little effort, you can navigate the world of Amazon Vine and taxes with confidence.
Disclaimer
Please note the material located on our site is for informational purposes only, is general in nature, and is not intended to and should not be relied upon or construed as a legal opinion or legal advice regarding any specific issue or factual circumstance. You should consult an attorney in the event you want legal advice.
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