Making $300 - $400 per month MSing Part Time
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I wish my car payment was only $300-$400/month 
I MS part-time as supplemental income -- at this point I can't imagine making enough to do it full-time...there just aren't enough shops...at least in my saturated market (and I have gotten picky after 4 years!). I make around $300/month on average (and eat for free quite often), so it's mostly just travel money for me.
I typically avoid reimbursement only shops, since I do this for the income. I really avoid the ones that pay a flat rate and don't reimburse anything (then I have to count the reimbursement as income!), but I suppose I can see the draw in doing reimbursement only if you are unemployed...although you aren't really making money unless they're shops you would otherwise have already spent money on.
Edited 1 time(s). Last edit at 02/16/2017 04:03PM by mysterynewbie.
I MS part-time as supplemental income -- at this point I can't imagine making enough to do it full-time...there just aren't enough shops...at least in my saturated market (and I have gotten picky after 4 years!). I make around $300/month on average (and eat for free quite often), so it's mostly just travel money for me.
I typically avoid reimbursement only shops, since I do this for the income. I really avoid the ones that pay a flat rate and don't reimburse anything (then I have to count the reimbursement as income!), but I suppose I can see the draw in doing reimbursement only if you are unemployed...although you aren't really making money unless they're shops you would otherwise have already spent money on.
Edited 1 time(s). Last edit at 02/16/2017 04:03PM by mysterynewbie.
Reimbursements are NOT taxable income. That is the benefit of, say, reimbursement only oil changes!
Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel
Poor customer service? Don't get mad; get video.
Shopping from the Carolinas to New York
Have video cam; will travel
Poor customer service? Don't get mad; get video.
what are some of the best companies to shop for?
Cortney22 The best companies to work for are the companies that you have worked for and have a scheduler that is helpful, shops you like and the pay is fair to you. You can not judge what others think, everyone is different and have a different purpose for shopping. Keep trying as many MSC as you can. I have shopped for over 10 years now and shop for about 6 that are the best for me.
@mysterynewbie wrote:
I typically avoid reimbursement only shops, since I do this for the income. I really avoid the ones that pay a flat rate and don't reimburse anything (then I have to count the reimbursement as income!)
I believe you are not doing the math correctly. If a shop has a purchase requirement, that is an expense. You put the expense for a flat fee shop in your expense column. You put the fee in your income column. Let's simplify this. Two shops each have a $10 expense. The first MSC pays $7 in fees and max reimbursement of $12. They pay you $17 for the shop. Another MSC offers a similar shop for a $17 flat fee. You also receive $17 for that shop. Your taxable income is $14 total, $7 for each shop as your $20 total outlay was towards required and covered purchases.
Someone with restrictions on income would seek reimbursement only shops that cover normal expenses. After mileage write offs they are at a negative bottom line. They can integrate some shops with fees, including fee only opportunities, that bring them back to a zero bottom line.
My posts are solely based on my opinions and for my entertainment, contact a professional if you need real advice.
When you get in debt you become a slave. - Andrew Jackson
When you get in debt you become a slave. - Andrew Jackson
Really? I don't typically make enough with any one MSC to get a 1099, but I always thought they would put the entire flat fee into your "income" and they wouldn't separate out how much I actually paid vs the total fee. And that is -- I assume -- what an auditor would look at ... the 1099 with the MSC's reported shopper fees, not my excel sheet (and receipts which only have to be kept a few months)?
@isaiah58 wrote:
@mysterynewbie wrote:
I typically avoid reimbursement only shops, since I do this for the income. I really avoid the ones that pay a flat rate and don't reimburse anything (then I have to count the reimbursement as income!)
I believe you are not doing the math correctly. If a shop has a purchase requirement, that is an expense. You put the expense for a flat fee shop in your expense column. You put the fee in your income column. Let's simplify this. Two shops each have a $10 expense. The first MSC pays $7 in fees and max reimbursement of $12. They pay you $17 for the shop. Another MSC offers a similar shop for a $17 flat fee. You also receive $17 for that shop. Your taxable income is $14 total, $7 for each shop as your $20 total outlay was towards required and covered purchases.
Someone with restrictions on income would seek reimbursement only shops that cover normal expenses. After mileage write offs they are at a negative bottom line. They can integrate some shops with fees, including fee only opportunities, that bring them back to a zero bottom line.
You are still missing his point.
If you have a shop that pays $5 and reimburses $10 and you spend exactly $10 you have a $5 taxable profit. You can show this on your taxes one of two ways. $15 in income and $10 in expenses totalling $5 in income, or you can just show $5 in income.
If you do a shop that has a $15 fee and you have a $10 required purchase your profit is still only $5. The difference is you can only use the first method from above.
Personally i report all income, both fees and reimbursements. I do this because i use a business checking account and i do a lot of hotel shops on routes. I feel like its an easier explanation if i get audited. Otherwise they will question why i have $3000 more in deposits than i reported as net receipts. The bottom line is the same, i just like the transparency of doing it that way. Plus i keep up with net payments and i dont want to have to have one line in my spreadsheet for fees and one for reimbursement.
Edited 1 time(s). Last edit at 02/17/2017 08:26PM by bgriffin.
If you have a shop that pays $5 and reimburses $10 and you spend exactly $10 you have a $5 taxable profit. You can show this on your taxes one of two ways. $15 in income and $10 in expenses totalling $5 in income, or you can just show $5 in income.
If you do a shop that has a $15 fee and you have a $10 required purchase your profit is still only $5. The difference is you can only use the first method from above.
Personally i report all income, both fees and reimbursements. I do this because i use a business checking account and i do a lot of hotel shops on routes. I feel like its an easier explanation if i get audited. Otherwise they will question why i have $3000 more in deposits than i reported as net receipts. The bottom line is the same, i just like the transparency of doing it that way. Plus i keep up with net payments and i dont want to have to have one line in my spreadsheet for fees and one for reimbursement.
There are reasons that a body stays in motion
At the moment only demons come to mind
At the moment only demons come to mind
Edited 1 time(s). Last edit at 02/17/2017 08:26PM by bgriffin.
On my income taxes I use the business income form. I list my expenses, then I deduct any 1099 income from my gross income. I report the 1099 then the balance. That shows the correct income before adjustments. I also track mileage and report it accordingly. I end up with my final taxable income. It is very easy to understand once you actually fill the form out
My posts are solely based on my opinions and for my entertainment, contact a professional if you need real advice.
When you get in debt you become a slave. - Andrew Jackson
When you get in debt you become a slave. - Andrew Jackson
That's exactly how I do it as well.
There are reasons that a body stays in motion
At the moment only demons come to mind
At the moment only demons come to mind
I have a few other expenses to pull out besides mileage. Hotels, meal allowance, tolls, bank fees, supplies, equipment, etc. But yes. Mostly the same.
There are reasons that a body stays in motion
At the moment only demons come to mind
At the moment only demons come to mind
Back on topic
I primarily perform restaurant shops. All cover expected expenses as reimbursement and most pay an additional fee. Sometimes I bring my spouse along and we go over the reimbursement, unless it is a fine dining assignment which I have yet to go over reimbursement for.
I also pick up some simple gas station assessments, minimal requirements, reveals are fine if only a few items are audited. I pick up some flyer restocking gigs, have done some door hanging. I also perform some simple grocery store assessments with reimbursement and fee.
My full time income for 2015 was down so I picked up more non-purchase gigs and added about $1,000 to my annual income which was of course taxable. For 2016 my reimbursement shops were about the same. I have a better job now so cut out the more physically demanding or more distant projects, most of which were non-purchase related.
I primarily perform restaurant shops. All cover expected expenses as reimbursement and most pay an additional fee. Sometimes I bring my spouse along and we go over the reimbursement, unless it is a fine dining assignment which I have yet to go over reimbursement for.
I also pick up some simple gas station assessments, minimal requirements, reveals are fine if only a few items are audited. I pick up some flyer restocking gigs, have done some door hanging. I also perform some simple grocery store assessments with reimbursement and fee.
My full time income for 2015 was down so I picked up more non-purchase gigs and added about $1,000 to my annual income which was of course taxable. For 2016 my reimbursement shops were about the same. I have a better job now so cut out the more physically demanding or more distant projects, most of which were non-purchase related.
My posts are solely based on my opinions and for my entertainment, contact a professional if you need real advice.
When you get in debt you become a slave. - Andrew Jackson
When you get in debt you become a slave. - Andrew Jackson
I just started doing shops where I get reimbursed. I spend a certain amount of money, submit my receipt with my report, and weeks to months later, I get reimbursed for the exact amount that I spent.
How and why do people consider this as income? What am I missing?
How and why do people consider this as income? What am I missing?
"I told myself to quit you; but I don't listen to drunks." -Chris Stapleton
People don't, necessarily, but the IRS does. If it's counted as income, as outlined above, you then deduct your actual expense, which leaves just the "profit" to be taxed. How the MSC structures the pay/reimbursement matters. It doesn't matter if you have to wait for pay and/or reimbursement; it's still counted.
@isaiah58 wrote:
In 2016 of my approx $3,600 in total payments, over $2,000 was reimbursements. I paid taxes on less than $1,000 after other adjustments.
Yep, that's a great point. Hobby v. full-time income matters, too, according to my HRB buddy (who sometimes shares "insight" with me). Apparently there's a formula for that?
I feel accomplished when I "make" $350 or more per month. That, to me, just for my own purposes, includes reimbursements. I try to keep my profit above $150 even when I "make" $200 per month. So lately I'm taking more no purchase shops, and I'm finding them to be higher fee shops, anyway. Go figure. That said, I do take some shops because reimbursement helps offset an expense I was planning on, anyway (a replacement for a broken kitchen gadget, recently). This, also, I understand, is a distinguishing factor between hobby and business. Consult your tax professional; I am not one.
Reimbursements of required purchases are not taxable income!
Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel
Poor customer service? Don't get mad; get video.
Shopping from the Carolinas to New York
Have video cam; will travel
Poor customer service? Don't get mad; get video.
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