Mystery Shopper and Taxes

As a Mystery Shopper, we are required to report taxes, but it will be as "self employed". Anyone knows what can we deduct as expenses? I know miles for sure, but what about meals and other things?

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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)

Lots of tax conversations in the forum. Let me suggest you check the sticky threads in the "New Mystery Shopper" area first.

The biggest deduction from Self Employment I get every year is the Health Insurance deduction, which gets subtracted directly from my earnings. A big savings!

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.

Remember each day to "help someone, laugh and learn something new!"

I echo Flash -

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!!

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BLAIREBAILEY - Please take your SPAM elsewhere.

(and go jump in an ice-covered lake)

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blairebailey Wrote:
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SPAM

And remember, until you make $600 for any one company, they are not required to report to the IRS or give you a 1099, so.......I'm just sayin.

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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