Ask Wade- What is tax status of affiliates?

Written by Wade Tonkin on March 18, 2008 – 5:17 pm -

Hi Wade

I would like to know if an Affiliate Marketer is Self-employed or an Independent Contractor?

I ask this question for tax purposes. Some Affiliate sites say self-employed and others say Independent Contractors.  The IRS makes a distinction! I am confused, what do you say is correct?

Thank You Sincerely,

Evette

Evette,

Thank you for your question.  Most of the affiliate agreements that I have seen have referred to affiliates as independant contractors who receive an IRS form 1099 (statement of earnings) for any commissions earned over $600 per year.

I’m not a tax specialist by any means, but this is what I have seen most commonly and what I have used in the programs I run.

Your best bet is always to consult an accountant/tax prep specialist.

God Bless,

Wade


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