Thanks everyone for the detailed responses! This is super helpful. I'm feeling much more confident about handling this now. One quick follow-up question - since I only started with Amazon Vine in September last year, would it make sense to start making quarterly estimated payments now for this year's taxes, or should I wait until I have a better sense of how much I'll receive in products this year? Also, for those who mentioned deducting business expenses - I assume I need to keep receipts for everything, right? Like if I buy a new camera specifically for taking better product photos for my reviews, that would be deductible?

Just wanted to add another perspective on this - I've been dealing with Amazon Vine taxes for three years now and one thing that really helped me was creating a simple spreadsheet to track everything throughout the year. I log each product I receive with its fair market value (from the email Amazon sends), the date received, and what category it falls into. This makes tax time SO much easier because you're not scrambling to figure out what that $3,200 on your 1099-NEC actually represents. Plus, it helps you estimate your quarterly payments more accurately as the year goes on. One tip that saved me money: if you return any Vine products to Amazon (which you're allowed to do), make sure to track those too. The returned items shouldn't be included in your taxable income, but Amazon sometimes includes them in your 1099-NEC anyway. Having documentation of returns can help you adjust your reported income correctly. Also, don't forget that if you donate any Vine products to charity, you can potentially deduct their fair market value as a charitable contribution (separate from your business deductions). Just make sure to get proper documentation from the charity!

Something important to add here - make sure the work is AGE APPROPRIATE!!! I got audited because I claimed my 12yo was doing "consulting" for my business. The IRS agent basically laughed at the idea a 12yo could provide consulting services. Stick to tasks that make sense for their age like filing, cleaning, simple computer work, etc.

Quick tip from someone who's been doing this for years: open a Roth IRA for your kids with their earned income! Since they likely won't owe taxes on the income (if under the standard deduction), they're essentially getting tax-free money going in AND tax-free growth and withdrawal later. It's one of the best financial head starts you can give them.

I'm dealing with a similar situation right now and wanted to share what I learned from my tax preparer. One thing that hasn't been mentioned yet - if your LLC has been operating as a partnership but you've been filing as a sole proprietorship (Schedule C), the IRS might also flag this as an entity classification issue. Make sure when you file your 1065, you're consistent about your entity election. If you never filed Form 8832 (Entity Classification Election), the IRS defaults multi-member LLCs to partnership status, which is why you need the 1065. Also, don't forget about your state requirements! Most states require separate partnership returns too, and those penalties can add up. Some states are more forgiving than others with penalty abatement, but you'll want to check your specific state's requirements. One more thing - if you have any business bank accounts, make sure the income/expenses on your 1065 match your bank records. The IRS can cross-reference this, and inconsistencies might trigger additional scrutiny. Good luck getting this sorted out!

Don't stress too much - this is actually a pretty common mistake for new LLC owners! The good news is that the IRS has specific provisions for situations exactly like yours. Here's what you need to know about penalty relief: **First-Time Penalty Abatement (FTA)** is your best friend here. Since you filed your personal taxes on time and this appears to be your first business filing penalty, you have a strong case for getting the penalties completely waived. The key is being proactive - file your 1065 immediately and include a penalty abatement request with your submission. **Quick reality check on penalties:** Yes, it's $210 per partner per month, but don't let that number paralyze you. Many first-time business owners successfully get these penalties reduced or eliminated entirely through FTA. **Your reasonable cause statement should include:** - This was your first year operating as a partnership - You demonstrated good faith by filing your personal return on time - You're taking immediate corrective action upon discovering the requirement - You had no prior knowledge of the 1065 filing requirement The fact that you already filed your personal taxes actually works in your favor - it shows you're not someone who ignores tax obligations, you just genuinely didn't know about this specific requirement. File that 1065 this week and you'll likely be fine!

FYI the financial institution already reported this to the IRS. The computer systems will automatically flag your return if the numbers don't match. Don't risk an audit over $187!

I went through this exact same situation last year with a small 1099-INT for about $150. I was tempted to skip it too, but I'm glad I didn't. The consensus here is absolutely correct - you MUST report all interest income regardless of the amount. There's no minimum threshold for reporting interest income on your tax return. What really convinced me was realizing that the IRS already has a copy of your 1099-INT form. The financial institution is required to send them a copy of everything they send to you. Their computer systems automatically cross-reference what you report against what they have on file. If there's a mismatch, you'll likely get a notice asking about the discrepancy. For $187, you're probably looking at owing maybe $30-50 in additional tax depending on your bracket, but the penalties and interest for not reporting it initially could add up to more than that. Plus, having to deal with IRS correspondence is just not worth the headache. Just report it and move on - it really is straightforward once you know where it goes on your return.

anyone know if they still doing the amazon gift card bonus this year?

I'm also waiting for TurboTax to announce their 2025 refund advance! From what I've seen, they usually launch it around this time but with all the IRS delays this season I wonder if they're being more cautious. Might be worth calling their customer service line to see if they have any insider info on when it'll drop.