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TAXES

June 13, 2013 11:36PM
Does anyone know what taxes are based on. The total of the shop (including the cost of the food) or just the fee paid by the shop to do the shopping??????
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More About Mystery Shopping Taxes
June 13, 2013 11:49PM
Neither. Taxes are calculated on taxable income, which is what's left after you've subtracted all expenses and depreciation applicable to your business. If a purchase is required by the guidelines and you are subsequently reimbursed for the purchase, the reimbursement is not taxable because the original expenditure was a shop expense that was required. Your taxable income from your business is calculated on Schedule C and the result is added to your Form 1040.

The best sources of tax information are the website IRS.gov and your tax professional.

Mary Davis Nowell. Based close to Fort Worth. Shopping Interstate 20 east and west, Interstate 35 north and south.
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June 14, 2013 11:58PM
I get that MD's post is right but somehow when you do a grocery shop and you have to spend $25.00 on any grocery items you want (and of course get to consume) and then you are paid $12.00 for the shop and REIMBURSED $25.00 for the groceries and still get to deduct mileage, etc. -- it makes it sound like a pretty good deal . . .
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June 15, 2013 12:18AM
cascaderobert - now your thinking like the one percent. Unfortunately, few shops reimburse us for something we really want or need, so when you find them, grab them!
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June 15, 2013 12:26AM
Huh? What do you mean "think like the one per cent?"
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June 15, 2013 12:31AM
You know, the top one percent in income. they know how to get more than just the income.
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June 15, 2013 01:36PM
Any company that pays you over $600 in shop fees (not reimbursements) should be sending you a 1099-MISC. However some include the reimbursements in which case you just deduct them on your schedule C as a Business expense.

CPA and willing to answer any questions anyone may have.
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June 15, 2013 03:33PM
Joe, thank you for your post. It's great to have a tax professional on board who's willing to share.

Mary Davis Nowell. Based close to Fort Worth. Shopping Interstate 20 east and west, Interstate 35 north and south.
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June 16, 2013 02:22PM
rezteach Wrote:
-------------------------------------------------------
> You know, the top one percent in income. they
> know how to get more than just the income.


That is why I mystery shop.

expect the unexpected
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