I know that I'll be getting a 1099 form from Amazon Associates for a year's worth of earning, but I'm confused as to what taxes I'll be required to pay.

Will I have to pay a self-employment (SE) tax along with the state and federal govt. tax?

Is it paid quarterly? As far as the SE tax goes?

I'm kind of worried about this but I don't want to have to be worried. The way I can NOT be worried is by either knowing an estimation of the yearly percentage that I'll have to pay and whether or not I would have to pay a SE tax on top of the federal and state tax.

Do any of you have experience with paying taxes on your affiliate earnings, more specifically, Amazon earnings?

I would GREATLY appreciate any help/guidance from you guys.
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AlexandriaD1 Premium
I've been wondering about this too. Love to get started with Amazon Affiliates but don't want to jack up during tax season.
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Prestones Premium
I ran a small business for a while Colton. I'm assuming from your comments that your concern is for US state and federal taxes.

Based on that experience, here's my take. Amazon will be issuing a 1099 to you, and sending a copy to the IRS to report your income. Your state and federal taxes will be based on that income, together with any other income you may have had during the year.

Keep in mind that you can deduct certain expenses from your income, since you are running a small business. Did you buy any software? Pay any subscriptions, such as here at WA or for some software? Upgrade your computer? Can you deduct for a home office? How about that 12 hp snow blower you had to purchase so your local clientele could access your office ;) ... and so on.

In addition, you'll have to pay double the 'normal' Social Security tax - half because you're an 'employee' and half because you're an 'employer'. Then there may also be a few other little dings you'll have to pay for some other miscellaneous taxes - but they're minor compared to the three above. Hopefully you don't have any municipal (city) income tax to pay as well.

Lastly, check into filing quarterly estimated tax payments for 2016. The IRS doesn't like having to wait for its money until the end of your tax year, and may get a little grumpy if you wait until April 2017 to pay them for the 2016 tax year.

Hope this helps ~ Dennis
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Dgegegegwg Premium
Luckily there is no personal income tax in Florida. I'm just going to enter into good old Turbo tax and let it figure it out for me. I haven't made enough yet to be too worried.
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Chris2005 Premium Plus
You need to see a local business tax person. Each state will have its own laws on this. That is why Amazon is not available for affiliates in some states.
John
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native33 Premium
Good question because I need some guidance on this as well.
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