Great question, I don't have an answer, but I was wondering the same thing! This will be my first year reporting mystery shopping earnings. I was wondering about deducting expenses for purchasing a GPS, digital camera, etc. And what about expenses for Internet access, since it is essential for our job?
I believe the internet can be deducted, but only if you use it specifically for the business. If you use it for home as well, then you will have to deduct only a portion. You can deduct this under "office expenses" (if I'm correct)
This is a huge subject with so many facets that one cannot even think about covering it in one post. After 32 years and never being audited (surprise surprise!) there is one thing I know for sure; taking a free online course offered by the IRS about IC's and deductions will give you great satisfaction if you do not have an accountant.
One other big surprise if you call the IRS to ask them, they really do answer the questions.
If anyone is interested I can start a thread with information about deductions by subject. My accountant has three full notebooks he has given me so that I can easily look up what I need to keep and what I can discard.
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Please visit the HUGE topic by Flash over in the "New Members Area" - it's a sticky at the top! A fountain of information there on your deductions, expenses, reimbursements, etc!
I've been a 1099 employee since November 2001. I've been deducting my internet, and cell phone, books, etc. (per a CPA) For my cellphone, it's mostly used for WORK. We use my husband's number, his isn't deductible. For my internet - if I didn't have it for WORK, I would NOT be using it very much. I figure the time I work online, versus the time I "play" online (and I don't play games, I actually use to play Neopets, oh my! My pets are probably dying by now! Yikes!).
I picked up a voice recorder, (deductible, only used for MS), ink, paper, office supplies, laptop, mouse, keyboard, batteries - yup, they are getting added to my Schedule C. I also follow the standard rules for a home office as I do have one.
However, again - visit the article written by Flash over in the New Members Area! AWESOME ADVICE!!
That is not correct. The company is not required to send you a 1099, but they will still report payments made on their taxes and you are still required to report your income regardless.
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