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How is income from AdSense & Amazon classified?

  1. Lily Rose profile image83
    Lily Roseposted 6 years ago

    I'm starting my 2010 tax return (I use Turbo tax) and I'm not sure what classification my AdSense & Amazon earnings fall under - freelance independent contractor or commissions from non-employer??  That is assuming it falls under the main subgroup of non-employee compensation...

  2. livewithrichard profile image85
    livewithrichardposted 6 years ago

    Did you receive your 1099's from all your affiliate programs?

    Anyway, you classify it on your 1040 as business income and attach schedule C or C-EZ but make sure you go through the worksheet so you can deduct all your expenses related to affiliate marketing.

  3. Lily Rose profile image83
    Lily Roseposted 6 years ago

    No, I'm still waiting on the 1099s - just starting to prepare for it.  What kind of expenses related to affiliate marketing can I deduct?  I know computer depreciation falls in there ... what else?

    1. livewithrichard profile image85
      livewithrichardposted 6 years ago in reply to this

      1. Hosting and registration fees if you own your own site,
      2. List building services. (aweber, getresponse, constantcontact)
      3. Any purchased tools such as Market Samurai
      4. Any outsourcing fees you paid out. (articles, blog templates, etc.)
      5. As Habee pointed out, travel fees associated with any travel articles you have written.
      6. Did you purchase a digital camera for the images you use in your articles?  (Good reason to purchase one this year if you haven't)

      You'll have to consult a tax professional on the amounts you can deduct for home computer use and internet service, especially if you use your computer for more than just affiliate marketing and other people in the house use the same computer.

      You might also want to consult on whether items you purchased to review are deductible, how much of your phone bill is deductible if you are doing phone interviews.

      You might want to review some of KeithTax's hubs, he's a tax guy and offers tons of great info http://hubpages.com/profile/KeithTax

      1. wordscribe43 profile image92
        wordscribe43posted 6 years ago in reply to this

        Agree about Keith Tax, in particular this hub:
        http://hubpages.com/hub/Online-Writing- … -and-Taxes

        Lily Rose:  this hub talks about how to classify yourself:
        http://hubpages.com/hub/What-Kind-of-In … x-Purposes

        1. livewithrichard profile image85
          livewithrichardposted 6 years ago in reply to this

          From a link in the comments of the second hub:

          http://www.brighthub.com/office/home/ar … 29683.aspx

          Gives a list of 45 expenses that can be deducted for freelance writers, though I would consult with a tax pro on how much can be deducted.  Every dollar helps and it also helps to be organized.

  4. KCC Big Country profile image84
    KCC Big Countryposted 6 years ago

    I got my Google 1099 today.

    1. Randy Godwin profile image93
      Randy Godwinposted 6 years ago in reply to this

      Me too!  Now comes the fun part of being a paid writer.  I wonder if inspirational beer is deductible?  smile

      1. habee profile image89
        habeeposted 6 years ago in reply to this

        Got mine, too. Beer? Nah...but how 'bout those trips we had to take to write travel hubs and take pics??

        1. Lily Rose profile image83
          Lily Roseposted 6 years ago in reply to this

          Very good point, Holle!

          1. kmackey32 profile image81
            kmackey32posted 6 years ago in reply to this

            Well maybe the beer makes u write more....lol

  5. Lily Rose profile image83
    Lily Roseposted 6 years ago

    Thanks, guys!  I was hoping to hear something from Keith, but he's probably pretty busy this time of the year - I'm going to go check out those hubs right now - thanks!

  6. Lily Rose profile image83
    Lily Roseposted 6 years ago

    Thanks for that link - very interesting.  Wish I would have kept notes - will take some time to document everything!

  7. kmackey32 profile image81
    kmackey32posted 6 years ago

    Good things to know for next year. I intend to make a ton of money...ha

 
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