In years past, I have gotten 1099s from mystery shop companies for my shopper pay which did not include the reimbursement for the item I had to purchase. I was going though my 1099s for last year and noticed that a number of companies have included the reimbursement amount in my 1099s. Did I miss a chance in what is claimed as income?
Edited 1 time(s). Last edit at 11/01/2018 10:08PM by shaneanne.
Don't you mean 1099's? I don't know of MSCs that hire employees and give W2s. But yes, you need to keep track and make sure that reimbursements aren't lumped into your total income on the 1099. Most companies do not add them, some do. Do you not keep a spreadsheet with that info from each MSC on it?
OP edited their post to correctly reflect 1099s.
Edited 1 time(s). Last edit at 11/02/2018 12:26AM by JASFLALMT.
Oh yeah, Reimbursements, Mileage, Tolls, paper, pens, new PCs, New printers, Ink or toner whichever. last years expenses for filing taxes. Partial cell phone bills and part of the internet bill and maybe a Home Office.
Just got notified that they are disallowing my mileage for 2015. Over $2000 they want back. Now they want to know why I went there. Should I just claim domestic spying? If I was in Nevada that is what a PI does and you have to be associated with a PI. Or have I missed something.
Edited 1 time(s). Last edit at 11/02/2018 08:13PM by 2stepps.
This is why I keep detailed records on my shopping activities. I print out the first page for each shop (CPI or questionnaire) and staple the receipt/business card to it. It shows the address I had to drive to. I keep a tiny book in my car, and record my mileage every time I get gas. My records absolutely 100% support my mileage write off. And I keep these with my tax records. Very simple, but it works.
What kind of record keeping did you use for 2015? You need to fix it, because they will now audit and disallow your mileage for 2016 and 2017!
If you failed to keep a mileage log, you can use Google maps to detail your mileage for each job. Personally, I wouldn't claim a home office unless you have a dedicated separate space (like a guest house) that you use for nothing except mystery shopping. It's a major red flag. It also affects you when you sell your home. Not usually worth it.
"Let me offer you my definition of social justice: I keep what I earn and you keep what you earn. Do you disagree? Well then tell me how much of what I earn belongs to you - and why?” ~Walter Williams
As someone who does taxes, any of you who do a lot of mystery shopping might want to get a business license and do your shopping under that business. It gives you a lot of opportunity to right off items that are cash. Reimbursed expenses are not taxable. Mileage, phone, internet.....the list goes on as to what you can legally deduct. You need to show a profit some years but it doesn't have to be a big profit. Just a profit. Keeping good records is the key.
No business license is needed in order to write off SE expenses on Schedule C. And, getting one may open the shopper to local rules about home based businesses, fees, and other totally un-necessary stuff. In addition business bank account are costly. Don't drink the Kool Ade regarding business licencing or incorporation or EINs. None needed to benefit from all SE tax perks !My source: tax attorney !
Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel
Previously blocked poster using new name. Post removed.