I got invited into Amazon’s Vine program to review “free” products. At the end I have to pay income tax on the estimated value of all the products, and since they don’t generate any money and very few of the things would sell for the same value on Marketplace or Craigslist, I’m essentially getting the items for 70% off.
I have ADHD, trying a new hobby every other week is a dream come true. The vine program has been awesome for that. I’ve tried punch needle, embroidery, polymer clay jewelry, resin jewelry, wood carving, gel printing, paper art, furniture painting, figurine/ model painting, blackwork drawing, hell I’ve even tattooed myself!
As of now, since I don’t own my own business, I should be filing this as hobby income, but what if I start a review blog? Can I write enough about my experiences reviewing all this random shit to make it count as an actual business? What even is a business anymore in this new feudal era we find ourselves in?
According to the IRS website you have to ask yourself the following questions to determine if an activity is hobby income or counts as being self employed:
- The taxpayer carries out activity in a businesslike manner and maintains complete and accurate books and records.
- I’ve used the same two credit cards for all my purchases related to the items I’ve been reviewing, so this is doable.
- The taxpayer puts time and effort into the activity to show they intend to make it profitable.
- Check. I’ve spent a lot of time on these arts and craft supplies, and now look at me, I’m even writing EXTRA shit on the internet.
- The taxpayer depends on income from the activity for their livelihood.
- Sure, I depend on every single dollar I get to make it to the next pay day.
- The taxpayer has personal motives for carrying out the activity such as general enjoyment or relaxation.
- Do what you love and you’ll never work a day in your life.
- The taxpayer has enough income from other sources to fund the activity
- 😂
- Losses are due to circumstances beyond the taxpayer’s control or are normal for the startup phase of their type of business.
- I’ve read some guides on how to make money reviewing products, seems like the losses so far fit this criteria!
- There is a change to methods of operation to improve profitability.
- There certainly can be! Probably things like stop giving away all the earrings for free and actually try to sell them. Become a paid affiliate.
- Taxpayer and their advisor have the knowledge needed to carry out the activity as a successful business.
- I believe I do
- The taxpayer was successful in making a profit in similar activities in the past.
- We all have to start somewhere
- Activity makes a profit in some years and how much profit it makes.
- I think I could.
- The taxpayer can expect to make a future profit from the appreciation of the assets used in the activity.
- Don’t think I can claim this one. Does polymer clay appreciate? Do the rollers? What about the embroidery looms?
Have I learned a thing or two about crafts that people will care about? Do I have something worth sharing with the world? Probably not, but that doesn’t mean I can’t try to make money off it anyways!
Trash me in the comments!