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I'm a current college student in the Dallas/Fort Worth area, who is looking to gain some extra income, due to current my unfavorable employment situation. I recently set up a dedicated blog and signed up for Amazon's affiliate program, because I thought it might be a good place to start (more specifically, I'm selling books, because I'm a fairly avid reader and have a wide range of interests when it comes to topics).

Unfortunately, I do seem to be facing one rather large hurdle: Amazon is asking me to sign off on an IRS 1099 form. Biggest problem for me here is, I haven't been employed for a long while, and the last time I was, I was only 17 (I'm now 26), so, obviously, I didn't do my own taxes then.

So, with that in mind, I figured it would be wise to get some advice before I possibly find myself in a sticky situation. So, with all this in mind, what is it that I need to worry about most?

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    "Amazon is asking me to sign off on an IRS 1099 form." I don't know what that means. How do you "sign off"? Nor do I understand what bothers you about it. Amazon says that if you have income from them, they are going to send you a form telling you how much income. Why would that bother you? Also note that you may get better help for starting a business at Startups.SE, although I suspect that they'd be as confused by this question as I am. – Brythan Jan 15 '17 at 10:21
  • "...they are going to send you a form telling you how much income. " As well as the Internal Revenue Service. – chili555 Jan 15 '17 at 14:40
  • @Brythan: Not so much bothered, TBH, as I can understand why this would be required. But as this is the first time I've personally needed to do something like this, and I was unsure what, exactly, of what to do. That said, though, I certainly do appreciate the tip! =) – AlternateSteve90 Jan 15 '17 at 22:37
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Whenever you do paid work for a company, you will need to fill out some sort of paperwork so that the company knows how to pay you, and also how to report how much they paid you to the appropriate government agencies. You should not think of this as a "hurdle" and you shouldn't worry that you haven't been employed for a long time.

The two most common ways a company pays an individual are via employee wages, or "independent contractor" payments. When you start a relationship with a company, if you are going to become an employee, then you will out a W4 form, and at the end of the year you will receive a W2 form. If you are an independent contractor, (which you would be considered in this case), you will fill out form W9 and at the end of the year you will receive a 1099. This is completely normal and you have nothing to worry about. All it means is that if you make more than a certain amount (typically $600) in a year, you will receive a 1099 in the mail or electronically. The 1099 form basically means that they are reporting that amount to the IRS, and it also helps you file your tax return by showing you all the numbers you need on one form.

Please remember that when you are paid as an independent contractor, no taxes are withheld on your behalf, so you may owe some tax on the money you make. It's best to set aside some of your income so you are prepared to pay it come tax time next year.

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  • Okay, and thank you so much for the help; I definitely appreciate it! =) – AlternateSteve90 Jan 16 '17 at 20:08

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