Why Did I Get a 1099-MISC From Amazon?

Receiving a tax form from Amazon means the company paid you certain types of income and reported that information to the IRS. This is standard for individuals in Amazon’s programs unrelated to direct marketplace selling. The form is an informational document, not a bill, but it signifies you have income that must be reported on your federal and, if applicable, state tax returns.

Amazon Programs That Generate Tax Forms

Amazon issues different types of 1099 forms depending on the nature of the income you earned. The two most common forms for creators, affiliates, and reviewers are Form 1099-NEC and Form 1099-MISC.

Form 1099-NEC, “Nonemployee Compensation,” is used to report payments to independent contractors. If you earn $600 or more in a calendar year from the Amazon Associates program or the Amazon Influencer Program, you will receive a 1099-NEC. The commissions you earn by referring customers are considered compensation for your marketing services.

Form 1099-MISC, “Miscellaneous Information,” is issued for other types of payments. You will receive a 1099-MISC from Amazon if you are paid at least $10 in royalties. This applies to authors and publishers in the Kindle Direct Publishing (KDP) program and artists using Amazon Merch on Demand. The Amazon Vine program, where members receive products in exchange for reviews, can also result in a 1099-MISC if the total fair market value of the products exceeds $600 in a year.

These forms are different from Form 1099-K. Amazon Marketplace sellers, those who list and sell goods directly to customers, receive a Form 1099-K, “Payment Card and Third Party Network Transactions.” This form reports the gross amount of payment transactions processed on their behalf, not direct payments from Amazon.

Understanding the Information on Your Tax Form

For a Form 1099-NEC, your total earnings will be in Box 1, “Nonemployee compensation.” For a Form 1099-MISC, income is typically found in Box 2, “Royalties,” or Box 3, “Other income.” This gross amount reported to the IRS is the starting point for calculating your taxable income.

Before reporting this income, you must determine all the related expenses you incurred to generate it. For an Amazon Associate, common expenses might include website hosting fees, domain name registration, and marketing tools. For a KDP author, expenses could include editing services, cover design fees, and marketing costs.

You must gather documentation for these expenses, such as receipts, invoices, and bank or credit card statements. Keeping organized records is required in case the IRS questions your deductions. The goal is to calculate your net profit by subtracting your total expenses from the gross income on your 1099 form.

How to Report Your Amazon Income on a Tax Return

The method for reporting your income depends on whether the IRS classifies your activity as a business or a hobby. This distinction is based on several factors, including whether you conduct the activity in a businesslike manner, the time and effort you invest, and if you depend on the income for your livelihood.

If the activity is considered a hobby, you report the income on Schedule 1 (Form 1040), “Additional Income and Adjustments to Income,” on the line for “Other income.” You must report all income received. Through the 2025 tax year, a change in tax law suspends the ability to deduct hobby-related expenses.

If you operate your Amazon-related activity as a business with the intent to make a profit, you will report your income and expenses on Schedule C (Form 1040), “Profit or Loss from Business.” The gross income from your 1099 is reported as gross receipts or sales, and you can then deduct all your ordinary and necessary business expenses, which will reduce your taxable profit. The net profit from Schedule C is subject to both income tax and self-employment taxes, which cover Social Security and Medicare contributions. The IRS presumes an activity is a business if it has been profitable in three of the last five years.

Steps to Take for an Incorrect Form

If you believe the income reported on your Form 1099 is incorrect, contact Amazon directly. Use the support channels associated with your specific program, such as the contact forms within your Amazon Associates Central or KDP account dashboard. This ensures your query is routed to the correct department.

When you contact support, provide specific details about the discrepancy. This includes the exact amount you believe is incorrect and documentation from your own records to support your claim. For example, a KDP author can use the sales reports from their KDP account to reconcile royalty payments.

If Amazon agrees that an error was made, they will issue a corrected form with the “CORRECTED” box checked at the top. You should wait to file your tax return until you receive this corrected form. If the tax filing deadline is approaching, you can either file for a tax extension or file your return with the correct information and include an explanation of the discrepancy.