Affiliate Marketing Taxes: What Beginners Need to Know

You made your first $100 in affiliate commissions. Now what about taxes? Here's what every affiliate marketer needs to know — in plain English, not accountant-speak.

Do I Need to Report Affiliate Income?

Yes. In the US, all income is taxable — including affiliate commissions. If you earn more than $400 in a year from affiliate marketing, you need to report it to the IRS. If you earn less, you still technically need to report it, though the threshold for receiving a 1099 form is typically $600+ from a single platform.

When Do I Get Tax Forms?

Affiliate networks and programs will send you a 1099-NEC or 1099-MISC if you earn $600+ in a calendar year. Amazon Associates, ShareASale, Digistore24, and most major networks issue these by January 31st. Even if you don't receive a 1099, you're still legally required to report the income.

Are You a Business or a Hobby?

The IRS distinguishes between a business (profit motive) and a hobby (not for profit). If you're actively trying to make money — creating content regularly, tracking expenses, trying to grow — you're a business. This matters because businesses can deduct expenses. Hobbies cannot (as of 2026).

Deductions Affiliate Marketers Can Take

• Website costs: Domain, hosting, WordPress themes, plugins
• Tools and software: Canva Pro, keyword research tools, email marketing software
• Content creation: Stock photos, video editing software, AI tools
• Education: Courses, books, conferences related to affiliate marketing
• Home office: A portion of your rent/mortgage, internet, and utilities if you have a dedicated workspace
• Equipment: Computer, camera, microphone used for your business

Quarterly Estimated Taxes

If you expect to owe $1,000+ in taxes, you need to pay quarterly estimated taxes (April 15, June 15, September 15, January 15). Set aside 25-30% of every affiliate commission for taxes. Put it in a separate savings account so you're not scrambling in April.