I started shopping in 2012 and am now JUST I am sloghing (sp) through my 2012 taxes.

I shop several different grocery chains for as many different mscs. They all pay differnetly.

#1 msc - grocery store requires a small nonreimbursed purchase and pays with a whooping $60.00 gift certificate to that store. Excluding mileage, etc, I assume the entire $60.00 is taxable and that the small required purchase is a moot point.

#2 msc - grocery requires a small nonreimbursed purchase and pays $32.00 through PAYPAL Excluding mileage, etc, I assume the entire $32.00 is taxable and that the small required purchase is a moot point.

#3 msc - grocery requires at LEAST an $25.00 purchase and pays $5.00 and reimburses $25.00 for the purchase. Is the reimbursed $25.00 taxable or it considered an expense? If an expense, what type of expense -- since I get to keep the groceries.

Thanks. Robert in Oregon

Edited 1 time(s). Last edit at 06/01/2013 01:07AM by cascaderobert.

Best to discuss this with your tax professional but generally a purchase you are required to make as part of the shop that is reimbursed is not taxable. The gift certificate in #1 is a cash equivalent and is taxable but the small nonreimbursed purchase is still a deduction. Same with #2. If #3 requires a $25 purchase and only reimburses $18 of it, the other $7 should also be a deduction.

What I do is, all money I receive, whether they call it a shop fee, a bonus, a reimbursement, or a gift card (cash equivalent) is income. Everything I am required to pay out as part of the shop is a deduction against that income, along with the mileage deduction and any other mystery shop expenses (computer, scanner, spy pen, smart phone).

But that's what I do. Talk to your own tax person about it. There are various ways to do this and come out with the correct result.

Any shop where you have to make a purchase, deduct the reimbursement from the shop. You were required to buy groceries as part of the shop, so the reimbursable amount is not income. The gift card is. And yes, don't forget to deduct mileage, office supplies, and you can even deduct office space. There are a lot of threads on taxes in the forum. Look under the "new mystery shoppers" link at the bottom of this page and it will take you to a page with more links. There is a specific thread about taxes. Most of us don't show much of an income each year after all is said and done (other than the video shoppers).



cascaderobert Wrote:
-------------------------------------------------------
> I started shopping in 2012 and am now JUST I am
> sloghing (sp) through my 2012 taxes.
>
> I shop several different grocery chains for as
> many different mscs. They all pay differnetly.
>
> #1 msc - grocery store requires a small
> nonreimbursed purchase and pays with a whooping
> $60.00 gift certificate to that store. Excluding
> mileage, etc, I assume the entire $60.00 is
> taxable and that the small required purchase is a
> moot point.
>
> #2 msc - grocery requires a small nonreimbursed
> purchase and pays $32.00 through PAYPAL Excluding
> mileage, etc, I assume the entire $32.00 is
> taxable and that the small required purchase is a
> moot point.
>
> #3 msc - grocery requires at LEAST an $25.00
> purchase and pays $5.00 and reimburses $25.00 for
> the purchase. Is the reimbursed $25.00 taxable or
> it considered an expense? If an expense, what
> type of expense -- since I get to keep the
> groceries.
>
> Thanks. Robert in Oregon

Remember, video shoppers have travel expenses to deduct

Use a schedule C and report as a business expense offset against net income. Oh ... and consult a tax preparer (EA or CPA).