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Federal Income Taxes

February 11, 2015 10:29PM
I just had my 2014 taxes done and declared that I did mystery shopping as an Independent Contractor and lo and behold I was surprised that I had to paya federal Self Employment tax on that income. Is there anyway to do your federal taxes without having to pay that tax?
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More About Mystery Shopping Taxes
February 11, 2015 10:44PM
"I did mystery shopping as an Independent Contractor"

This makes you self-employed.

You could have opted to say you do mystery shopping as a hobby and not paid the SE tax, but you also would only have been able to write off your mileage and other expenses *if you itemized.* so if you didn't itemize, you might have paid regular income taxes on all your shopping income (minus reimbursements) instead of paying SE tax and regular income tax on only your shopping profits. Mileage is usually a shopper's biggest writeoff.

Time to build a bigger bridge.
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February 11, 2015 11:04PM
When you are self-employed you end up paying what amounts to both the employee and the employer contribution to FICA (Social Security), less a small discount.

Yes, like any employer you have to pay it; like any employee (you are both) you have to pay it.

Based in MD, near DC
Shopping from the Carolinas to New York
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