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1099 question

July 18, 2017 01:51PM
Do the MSCs count reimbursements toward reportable income? I understand that it shouldn't be taxable, but just wondering if it is included toward the $600 requirement or not. I'm guessing the answer is no, but just want to confirm. Thanks!
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More About Mystery Shopping Taxes
July 18, 2017 01:57PM
They are not supposed to, but sometimes do.

Watch out for shops that include your reimbursement in the total fee offered, though. That becomes taxable income which you will need to deduct elsewhere.

It should be noted that you are required to report the income you earn, even if it does not meet the $600 threshold to trigger a 1099 though.
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July 18, 2017 02:01PM
A few of the MSCs I work for put the product purchase amount paid in my 1099S. Others don't and it's a PITA at tax time..
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July 18, 2017 02:44PM
Great, thanks for the responses. I'm keeping detailed records and plan to report everything, just wanted an idea of when I should be expecting 1099s. This is very helpful!
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July 18, 2017 04:38PM
@JASFLALMT wrote:

A few of the MSCs I work for put the product purchase amount paid in my 1099S. Others don't and it's a PITA at tax time..

I just report my entire payments (fee and reimbursement) and then report all expenses (reimbursed and non-reimbursed). The end result is the same, I don't have to worry about how the MSC reports it, and in the case of an audit I don't have to explain why I had deposits of $5k more in my business checking than i reported as income.

There are reasons that a body stays in motion
At the moment only demons come to mind


Edited 1 time(s). Last edit at 07/18/2017 04:42PM by bgriffin.
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July 18, 2017 09:17PM
please delete....

Edited 1 time(s). Last edit at 09/03/2017 10:44PM by lucky7s.
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July 19, 2017 01:20AM
He loves it when you stroke his ego, LOL.
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July 19, 2017 03:04AM
@bgriffin wrote:

@JASFLALMT wrote:

A few of the MSCs I work for put the product purchase amount paid in my 1099S. Others don't and it's a PITA at tax time..

I just report my entire payments (fee and reimbursement) and then report all expenses (reimbursed and non-reimbursed). The end result is the same, I don't have to worry about how the MSC reports it, and in the case of an audit I don't have to explain why I had deposits of $5k more in my business checking than i reported as income.

That's an excellent point, and I never thought of it that way. I've been filing the same way because I figured it was less complicated to keep track of.
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