Amazon Vine Reviewers?

[Pellice]

I had an invitation today to become an Amazon Vine reviewer - one of those people who gets free stuff and then reviews them. I had never heard of the program and do not know why I was asked to become a reviewer. I DO leave occasional reviews, but not that many. I do try to make my reviews helpful and detailed, so that accounts for it, I guess.

I looked up the program, and it is legit. And, it's not a program where you keep getting stuff and have to review it. You have control over what you choose to get. On the other hand, I am in decluttering mode, so I would have to be disciplined in what I choose.

Has anyone here had experience with this program? Pros and cons? I'm kind of inclined to try it, I could always cancel if it becomes a burden.

 

[daylatedollarshort]

I was for a long time and then dropped out. It was nice at first. Lately many of the items started to be getting pretty junky, not returnable once ordered (we still had to pay tax on them), and the taxes treatment changed to business income.

 

[easysurfer]

From what I understand, why you are invited to join and why Amazon may say thanks but you are no longer needed is sort of a mystery. As mentioned, you do have to pay income tax (I believe if total value of things ordered in a year is $600 or higher, you will get a 1099 form).

I've read where people go crazy and order all kinds of stuff. A better approach is to order only stuff that you may use. Remember, you'd have to review them too. If not, that's a good way to get dropped from the program.

 

[daylatedollarshort]

DH convinced me to drop out after he did the taxes this year and pointed out how much my "free" stuff was costing us. It used to really be a review program of nice quality, new items. But lately a lot of the items up for "review" seem to really just be their way of getting rid of returns and overstocks because the items aren't even being sold on the site anymore.

 

[easysurfer]

The way I see Amazon Vine is kind of like eating at a buffet restaurant.

The strategy is to get what you need but not over indulge. Get stuff that you were looking at Amazon for anyhow. Maybe even make a list of these things, then see if there is a match in Vine.

 

[JoeWras]

I got an invite too. Surprising since I don't do many Amazon reviews.

I'm a long time (8 years) member of the Home Depot Seeds program. They still haven't asked for tax information, but I report it anyway because at one time I was thinking of becoming an enrolled agent and wanted to be clean. Plus it is the right thing to do. I'm surprised HD hasn't made us give our W-9 information.

easysurfer has it right. Get a list and only get the stuff you need. Don't go crazy otherwise it will be like winning a junky baker's rack on The Price is Right: you'll have a turd AND you'll have paid taxes on the turd.

I regret some of the stuff I got on HD Seeds. I paid taxes on pure junk. However, I don't regret being able to get a nice table saw, chop saw, and a complete set of brand new appliances. The only problem is you get what they offer, which may not be exactly what you were looking for.

 

[JoeWras]

... not returnable once ordered (we still had to pay tax on them)...

This is the biggest downside.

The Seeds rules are that you don't get warranty service. This can be significant. I got an over-the-range microwave that became flakey. No service. So I just replaced it with another from the program after only 8 months. Paid tax on both.

My dishwasher also had a class action suit that would have gotten me about $100 for repair. I couldn't qualify for the terms of the suit, so I was out repair costs (which I DYI'ed).

 

[daylatedollarshort]

This is the biggest downside.

The Seeds rules are that you don't get warranty service. This can be significant. I got an over-the-range microwave that became flakey. No service. So I just replaced it with another from the program after only 8 months. Paid tax on both.

My dishwasher also had a class action suit that would have gotten me about $100 for repair. I couldn't qualify for the terms of the suit, so I was out repair costs (which I DYI'ed).

I got a "free" tablet that was obviously used and returned as defective. It doesn't work and I still had to pay tax on it. We just started getting too many items like that so after paying the taxes on items that were unusable we weren't really coming out ahead.

 

[easysurfer]

Another thing to keep in mind too, some products on Vine may get snatched up quickly. One item I saw was a new Cannon R10 mirrorless camera. About $1000 value. If I remember correctly, was the camera body and starter lens.

I wasn't looking for a mirrorless camera, so passed. But was tempting .

Was probably only available for hours before getting snatched up. A saw it during an evening. By morning when I looked again, was already gone.

 

[JoeWras]

Do you know when products are posted? Is it random?

Home Depot Seeds has a very predictable pattern. That helps in finding the good stuff.

 

[SnowballCamper]

I got an invitation about the same time as OP and have begun to get stuff. Since we are early retired, our frugality tends to result in not having much stuff around the house that could be useful, or support a hobby. This has been great for DW and nice for me and the kiddo. Yes there is a lot of junk to sift through, but some items are (at least initially) very nice and useful. For example, I've had various belts in my shopping cart over the last six months and haven't bought because I'm cheap, and not sure about the quality. On Vine there isn't much reason not to get it.

I'm looking forward to figuring out the tax treatment... if it's 'earned' income then I should be able to make contributions to my IRA again... right?

 

[JoeWras]

It's a 1099-misc, and most report it as hobby income, which is not earned.

I think you could make it a "business" to classify it earned, but that will open up a huge can of worms .

I'm going slow to avoid the 1099 this year. I'll cross the 1099 bridge next year.

 

[RetiredAndLovingIt]

It's now a 1099-NEC, not a 1099-MISC. I was also invited to join earlier this year and I was just promoted to Gold status in the recent changes they're making. I'm trying to stick to less than $600 this year, there's a lot of $0 ETV items that I've ordered. I plan to run my TurboTax what if program in a couple of weeks to see how it handles a dummy 1099-NEC.
I definitely overbought stuff that I shouldn't have because it was free with no tax value, in fact right now I have not ordered for a week until I catch up on my reviews., I have 29 left right now to do and it can be very stressful when you get behind. My daughter just had her first baby and I've picked up a lot of clothes (Disney) and other necessities for free. My advice is don't tell your family because everyone wants you to look for this or that for them. I made it crystal clear to my kids but they still ask from time to time. I have ordered 125 items since the end of July, I have enough Alka Seltzer to last me a lifetime, I have a baby pack and plays and a 5' x 7' kids playpen, it's bad. Here's a photo of some of my recent food stuff and medicine (not the coffee or kettle)

 

[daylatedollarshort]

We received a [FONT=&quot]1099-NEC last year for the Vine products, which is for business income, usually subject to self employment SS and Medicare taxes. I saw on Reddit some posters said it may be possible to claim it like 1099-MISC income anyway, but I don't know about that. We just filed it as business income, which is when DH was not a happy camper over the amount of taxes we had to pay, and convinced me to drop out.
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[RetiredAndLovingIt]

By the way the Recommended For You tab has no rhyme or reason to it and don't be offered when you get offered some "adult" items we all do. I got offered something I didn't even know what it was and when I told my daughter she immediately knew exactly what I was talking about and used the correct name for it, that was way to much information for me. The best tab is Available For All, a couple of weeks ago I was offered a Samsung Odessy curved gaming TV Monitor with a tax value of over 3K and also a Acer desktop computer. The computer was gone and I never bothered with the TV due to the value but in the moment my self imposed limit of $600 went right out the window. Things pop up randomly throughout the day.

 

[RetiredAndLovingIt]

I got an invitation about the same time as OP and have begun to get stuff. Since we are early retired, our frugality tends to result in not having much stuff around the house that could be useful, or support a hobby. This has been great for DW and nice for me and the kiddo. Yes there is a lot of junk to sift through, but some items are (at least initially) very nice and useful. For example, I've had various belts in my shopping cart over the last six months and haven't bought because I'm cheap, and not sure about the quality. On Vine there isn't much reason not to get it.

I'm looking forward to figuring out the tax treatment... if it's 'earned' income then I should be able to make contributions to my IRA again... right?

It's not earned income, that was my thought as well when I started.
I think 1099-NEC was created for gig workers and we seem to be falling into that category.

 

[JoeWras]

It's now a 1099-NEC, not a 1099-MISC.

Oh sh... That's a complication. I'm definitely going to go super slow for the rest of the year. I'm only at $250 now and want to keep it below $400 instead of $600 just to be super certain regarding the IRS language.

We received a [FONT=&quot]1099-NEC last year for the Vine products, which is for business income, usually subject to self employment SS and Medicare taxes. I saw on Reddit some posters said it may be possible to claim it like 1099-MISC income anyway, but I don't know about that. We just filed it as business income, which is when DH was not a happy camper over the amount of taxes we had to pay, and convinced me to drop out.
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Yeah, the NEC will definitely put you in a different world. Perhaps you can call it hobby income, but perhaps the IRS will ask you to prove it.

Self employment tax on non-cash items is ridiculous in my mind, but the IRS may disagree.

 

[The Cosmic Avenger]

I just started this and I'm also trying to order things I would have anyway, or at least things I might order if they were cheaper. (Like, just paying the tax!) To be honest, it seems like pretty low pay for the amount of work, but it's fun, I normally do try to review things just to help others decide.

 

[daylatedollarshort]

Yeah, the NEC will definitely put you in a different world. Perhaps you can call it hobby income, but perhaps the IRS will ask you to prove it.

Self employment tax on non-cash items is ridiculous in my mind, but the IRS may disagree.

I suspect the change in tax forms is one of the reasons why Amazon is having reviewer openings now. I can buy higher quality, new items at Ross for 50 - 30% off, plus an extra 10% off on senior discount day, not have to review anything, and if it is defective I can return it. That math works better for me per hour of my time.

 

[JoeWras]

I suspect the change in tax forms is one of the reasons why Amazon is having reviewer openings now. I can buy higher quality, new items at Ross for 50 - 30% off, plus an extra 10% off on senior discount day, not have to review anything, and if it is defective I can return it. That math works better for me per hour of my time.

Spot on. Not just here, but on the Reddit forums and elsewhere I'm seeing people say they were recently invited to Vines. People have definitely dropped out or slowed down.

I already got one clunker on Vine that I wish I hadn't obtained. I had this issue on the other program too. Clunkers still count to your tax.

 

[RetiredAndLovingIt]

If it's damaged, not as advertised or simply does not work you can e-mail through the Vine contact us and they will remove it from your tax ETV. They removed phone chargers that were not as pictured (no brand name or wattage on the product) for me. It doesn't show the reduction on your account right away but come tax time it will, I just keep the e-mail they sent me saying they would remove it. You usually get a response within 24 hours but right now it's been over a week that I've been waiting for a response on removing or fixing one that I can't review, bought 2 different items from same listing and can only review one of them.

 

[JoeWras]

I keep reading that others are classifying their 1099-NEC as "hobby" income, thus not requiring the self employment portion of the tax code.

I won't get a 1099-NEC this year, but I might next, so I'm preparing.

Here's what the IRS says about Hobby vs. Business income:
https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business

What's the difference between a hobby and a business? A business operates to make a profit. People engage in a hobby for sport or recreation, not to make a profit.
Here are nine things taxpayers must consider when determining if an activity is a hobby or a business:

• Whether the activity is carried out in a businesslike manner and the taxpayer maintains complete and accurate books and records.
• Whether the time and effort the taxpayer puts into the activity show they intend to make it profitable.
• Whether they depend on income from the activity for their livelihood.
• Whether any losses are due to circumstances beyond the taxpayer's control or are normal for the startup phase of their type of business.
• Whether they change methods of operation to improve profitability.
• Whether the taxpayer and their advisors have the knowledge needed to carry out the activity as a successful business.
• Whether the taxpayer was successful in making a profit in similar activities in the past.
• Whether the activity makes a profit in some years and how much profit it makes.
• Whether the taxpayers can expect to make a future profit from the appreciation of the assets used in the activity.

 

[Starsky]

I was invited a few weeks ago and have about 40 transactions so far. I have gotten some nice products and I'll be interested at year-end to see how this affects our taxes. A lot of things are useful items I'm happy to have at 80+% off, but wouldn't remember to search for online. Other things, like must-buy toner cartridges and replacement HEPA filters, are straight-up savings. I try to only pick things I will definitely use.
I've changed how I shop on the site as I've learned more about it. There are so many different things that having a list of search terms is helpful, but finding random gems is more fun. I like shopping online, so for now it's a fun distraction. We'll see how long it lasts...

 

[RetiredAndLovingIt]

137 items for me since August which is amazing to me. My previous Amazon purchases if I remember correctly was around 7 for the year before I got this opportunity. In the beginning I was like a kid in a candy store and I'm only at about $450 right now thanks to a lot of zero ETV items but I have cut back drastically to only picking up what I or a family member really can use. With a new grand-kid it's been great, my daughter really appreciates all I bring her.

 

[cathy63]

If you choose not to report 1099-NEC income on a Schedule C, be aware that the IRS may send you a letter saying that they have calculated your SE Tax for you and here's the amount due plus a penalty and interest. You can always respond to that letter with your explanation of why you are treating this is hobby income instead of business income, but unless you can say that you would continue to do it even if you had to pay full price for the products, it's going to be a difficult argument to win.

I had a Tax-Aide client last year who brought in an IRS letter about the previous year's return where she had reported 1099-NEC income (not from Vine) on Schedule 1, so I know they are looking at this.