Received 1099-MISC (Copy B For Recipient) from Zazzle for small royalties - what to do?

Just opened my mail today and found a 1099-MISC income form from Zazzle, where I have an account that generates some royalties from my designs. The form is specifically "Copy B For Recipient" which I'm guessing means it's my copy to keep? The thing is, I only made a small amount from them last year - around $370 total for the entire year. I already have a regular W-2 job where I make about $52,000 annually. Do I need to report this small amount of royalty income? What form do I use when filing my taxes this year? Is this considered self-employment income that I need to pay additional taxes on? I've never received a 1099-MISC before and don't want to mess up my tax filing. Does anyone know if there's a minimum amount I need to earn before reporting it? Should I just add this to my regular tax return somehow or do I need to file something separate?

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22 comments

Charlotte Jones

•8M

Yes, you definitely need to report that 1099-MISC income on your tax return, even if it's a relatively small amount. All income is technically taxable regardless of the amount. The "Copy B For Recipient" is indeed your copy to keep for your records. Since you have this royalty income alongside your W-2 job, you'll need to fill out Schedule C (Profit or Loss from Business) if this is considered self-employment income, or Schedule E if it's strictly royalty income. Based on what you described with Zazzle, it sounds like royalties from your creative work, which typically goes on Schedule E. You'll also need to pay self-employment tax on this income if your net earnings are $400 or more, which might apply in your case depending on any related expenses you can deduct.

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Charlotte Jones

•8M

For Zazzle specifically, it depends on how active you are in the business. If you're actively creating and uploading new designs regularly, the IRS would likely consider this self-employment income that belongs on Schedule C. If you created designs once and are just collecting passive royalties now, it would go on Schedule E. Most tax software like TurboTax or FreeTaxUSA can handle this situation easily. When you enter your 1099-MISC, the software will ask questions to determine which schedule is appropriate and walk you through the process.

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Harper Thompson

•8M

I had the exact same situation with Zazzle last year! I tried figuring it out myself and spent hours reading conflicting info online. Then I found this AI tool called taxr.ai (https://taxr.ai) that analyzed my 1099-MISC and told me exactly how to report it. It basically scanned my Zazzle 1099 and clarified that for most people, Zazzle royalties go on Schedule C as self-employment income, not Schedule E. It also identified some deductions I could take related to my design work that I had no idea about! Saved me a bunch in taxes.

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Harper Thompson

•8M

It's actually surprisingly accurate - it's trained on tax code and thousands of real tax documents. For your Redbubble and Society6 income, it would analyze how those platforms classify your earnings and give platform-specific guidance. It found distinctions I didn't know existed. The difference from generic searches is it analyzes your specific 1099 form and gives personalized advice. Compared to TurboTax, it gives more detailed explanations of "why" rather than just telling you where to enter numbers. I still used TurboTax but felt way more confident about my choices.

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Caleb Stark

•8M

Just wanted to update - I tried that taxr.ai site from my earlier question about my Redbubble income. Super helpful! It confirmed my print-on-demand income should indeed go on Schedule C, explained I needed to file Schedule SE for self-employment tax since I made over $400, and identified some home office deductions I could take for my design workspace. What surprised me most was learning I could deduct my design software subscription and the tablet I use for creating designs. The tool actually showed me the specific IRS rules that allow those deductions. I've been paying taxes on this side income for years and never knew I could reduce my tax bill this way!

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Hunter Edmunds

•8M

If you're struggling to get answers about your 1099-MISC from the IRS directly, try Claimyr (https://claimyr.com). I had a confusing situation last year with multiple 1099s from different platforms and couldn't get through to the IRS for weeks. Claimyr got me connected to a real IRS agent in about 15 minutes instead of waiting on hold forever. The agent clarified exactly how to report my mix of 1099-MISC and 1099-K forms from various creative platforms. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - it's basically a service that navigates the IRS phone system for you and calls you when an agent is ready.

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Hunter Edmunds

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Andrew Pinnock

•8M

I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it myself because I had a question about my 1099-MISC from Etsy that was similar to the original poster's Zazzle situation. I was shocked when my phone rang about 45 minutes after signing up, and it was actually a real IRS agent! They answered my specific question about whether my Etsy income should be reported on Schedule C or Schedule E (it's Schedule C in my case since I actively make and sell items). The agent also explained the self-employment tax threshold and confirmed I needed to file Schedule SE. Never thought I'd say this, but it was actually a pleasant experience talking to the IRS. Definitely keeping this service in mind for next tax season.

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Brianna Schmidt

•8M

For what it's worth, I've been receiving 1099-MISC forms from Zazzle for years. Definitely report it - even small amounts. I report mine as self-employment income on Schedule C because I regularly create and upload new designs, which makes it an active business rather than passive royalties. One tip: keep track of ALL your expenses related to your design work. Software subscriptions, portion of internet bill, computer equipment, even research materials can be deductible. I missed out on these deductions my first two years and probably overpaid hundreds in taxes.

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Brianna Schmidt

•8M

That's a common misconception! Business expenses on Schedule C are completely separate from your personal itemized/standard deduction choice. You can take the standard deduction AND still deduct all your business expenses on Schedule C. They reduce your business profit, which lowers both your income tax and self-employment tax. This is actually one of the benefits of having a side business - you can deduct related expenses directly against that income even while taking the standard deduction. Just make sure to keep good records in case of an audit.

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