Hi, I use turbo tax this year. If I choose "I provided service", it count as business income and I need to pay 10% extra. If I choose "didn't provide service", I don't need to pay social security tax. Question: Both are legal? I understand that for the first one, I can report business expense. But If I don't have much business expense, may I just report the other way? Thanks.
This is probably a very late response, but I hope it helps just the same. Basically, when you are an Amazon Associate, you are acting as an independant contractor, responsible for all your own taxes. If you make more then $600 with Amazon in the year, they will send you a 1099 form. If you didn't get a 1099 from Amazon, then you don't need to report the earnings. I'm not a tax professional, so I'd recommend you confirm what I just said with your tax pro, however, I pretty sure about the info. Good luck. PuReWebDev
Thank you for replying me. But it doesn't answer my question. I do get 1099 form. I know I have to pay tax. But I can report as business incoming, which I can report business expense to pay less tax, but I have to pay 10% social security tax and mediacare tax. Or, I can report as non-business incoming, which I can NOT report any business expense, but I don't need to pay the 10%. My question is: are both ways legal? I just need to pick a way that I pay less? Thanks.