Tax exemptions discontinued for tax year 2019

Is anyone aware of the major deductions no longer allowed on new tax code.
I'm afraid it's going to take a big chunk out of our shopper income. From what I have heard here are some deductions no longer allowed, Home office, Travel deductions to and from jobs, Meals while traveling.
If anyone can give me feedback on ways to protect or lessen my tax liability for this next tax season. It would be appreciated immesensly. I have increased my Federal tax withholding at my part time regular job. And would like to avoid having to pay taxes on my Social Security Income. I was under the limit last year , but with these new tax codes. I don't need Sticker Shock when I file next year
Every thing I looked for on Google was 2 or more years old. Thanks in advance for your sage advice

Edited 1 time(s). Last edit at 04/01/2019 09:59PM by David Hoppe.

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Those deductions are all still allowed for independent contractors.

Where did you hear this?

@David Hoppe wrote:

Travel deductions to and from jobs,

I'm afraid I can't help as I haven't heard any of it yet. And the recent discussion on taxes has been for the 2018 tax year. I know there was a thread that talked about a new break here:
[www.mysteryshopforum.com]

Kim

Edited 1 time(s). Last edit at 04/02/2019 03:49AM by kimmiemae.

Those deductions are no longer allowed for employees traveling on their company's dime.

We as independent contractors, aka self-employed can take them, if we have the paperwork to support the deductions.

THIS IS WHY I GET BENT, WHEN I TELL EVERYONE TO DOCUMENT EVERYTHING! Build spreadsheets, however it makes sense in your mind, But I will reiterate...DOCUMENT EVERYTHING YOU DO FOR MYSTERY SHOPPING! It's a business.
If you don't understand this stuff, talk to a tax professional. It was my greatest joy to make sure my clients paid the least amount of money or got the biggest refund when I did taxes for a living.

And it's not the smartest thing to use the income as a hobby, That is a royal PITA to switch to a business,
.

Live your life in such a way that when your feet hit the floor in the morning; the devil shudders...And yells OH #%*+! SHE'S AWAKE!

Edited 1 time(s). Last edit at 04/02/2019 06:06AM by MA Smith.

I would like to hit the "like" button on your reply repeatedly.

It is my mantra: recordkeeping, recordkeeping, recordkeeping!

I keep a tiny notebook in the side pocket in my car; every single time I get gas, I note where, the date, how much, the cost, and my mileage off the odometer.

To support this bare-bones diary, I keep the first page of the shop (CPI, assignment, whatever -- the page with the shop's address/phone number), stapled to the receipt/business card/POV for the shop, in a box. Each year in one box. If IRS wants to know why I was in ONeill NE on 3/29, I have the CPI and receipt to prove I was there 100% on business. And I can put my hands on the physical record in about 15 seconds flat.

Having the mileage deduction kicked back because of lack of records is a royal PITA, and it's so incredibly easy and sensible to keep these current records.

When I personally mentor a new shopper, I always gift them with a tiny notebook; I put the first entry in it for them.

Not one -- not a single one -- has ever followed through and kept the notebook up to date.

Which disappoints and dismays me.

Maybe I'm just weird -- I ENJOY record-keeping!

There are some great free apps for the phone that keep your mileage and let you pick the category when a trip is finished. I use a free one called Everlance. It gives me a weekly report and I am able to set categories such as work, personal, medical etc. No paper needed and it works off GPS so it tells you exactly where you started and ended and everywhere you go in between. If you upgrade and pay for the app which I have not done, I believe you can print full reports at tax time for your records. I'm sure there are many out there but this is the only one I have worked with. Just a thought.

Everlane is a decent app, as long as you remember to start and end every trip appropriately. You can also enter two locations and create an entry. I found it easier though to keep a spreadsheet with dates, distance and a reference to each associated shop.

Has anyone ever been audited over this?

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

There was a thread from a shopper a couple months ago whose mileage was disallowed in an IRS audit.

Yes, but I think that the shopper did not correctly report it.

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.

Or didn't have supporting paperwork/records.

I am meticulous about recording everything. I use an Excel spreadsheet where I list every job I take. It includes date, date paid, MSC, job, fee, bonus, reimbursement, and expenditures that weren't reimbursed. Another tab is for mileage, and another for misc. expenditures, such as buying minutes for the phone recorder app.

I would like to be mentored by you!

Another tax/mileage question: How do you record mileage for shops that are combined with non-shopping trips? For example, I had to go to a medical specialist about 70 miles away. On the way, I did a couple of jobs. Do I claim the mileage from home and back to the two shopping jobs and exclude the miles between the appointment and shops?

Similarly, I make a weekend trip every 6 weeks or so that takes me through 150 miles of a rural area dotted with tiny towns. Last weekend I grabbed a few quick shops that were literally on my route. All I had to do was pull off the state highway into the parking lot. I can't decide if I should let that mileage go or figure out a reasonable way to record it. The kicker with these shops is they pay super low but take less than 5 minutes. I would never make the drive just for them but grabbing a dozen of them on the way home is worth it.

I take a very conservative approach when I combine mystery shopping with a trip to visit a friend. I calculate the distance with and without the mystery shops (all of them in a logical order). The difference is what I attribute to mystery shopping mileage. I can imagine a situation where I set up a route of mystery shops and realize that I am very close to a friend so we meet for lunch. Then I would claim the total mileage, It comes down to the intent of the trip. IMHO, visiting a medical specialist defines the reason for the trip, so only the difference would be deductible. In your final scenario, you said "I would never make the drive just for them", and to me that says that only the mileage difference would be deductible.

@callinectes wrote:

Another tax/mileage question: How do you record mileage for shops that are combined with non-shopping trips? For example, I had to go to a medical specialist about 70 miles away. On the way, I did a couple of jobs. Do I claim the mileage from home and back to the two shopping jobs and exclude the miles between the appointment and shops?

Similarly, I make a weekend trip every 6 weeks or so that takes me through 150 miles of a rural area dotted with tiny towns. Last weekend I grabbed a few quick shops that were literally on my route. All I had to do was pull off the state highway into the parking lot. I can't decide if I should let that mileage go or figure out a reasonable way to record it. The kicker with thI would never make the drive just for themese shops is they pay super low but take less than 5 minutes. but grabbing a dozen of them on the way home is worth it.

Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008

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