@walesmaven wrote:
Actually, you do not need to make a profit on every business related trip since maintaining relations with the MSCs so that the schedulers continue to consider you for shops, getting experience with different types of shops or clients, and many other business purposes are legitimate. Just keep your lodging and meal expenses reasonable. Basically, when you read that a shopper is doing/has done "a route" those are often involving overnight expenses and travel. Deductions can include: highway tolls, parking reasonable meal and lodging expenses. The objective of your business for the year should be to make a profit; daily profit is not required for every day or for every business-related trip. So, for instance, attending a shopper education program is a legitimate business expense.
@BirdyC wrote:
You absolutely can deduct these expenses, as long as reasonable and necessary. In the past, you could only deduct 50% of your meal expenses, but I believe that for 2021 and 2022, the IRS has made this 100% (which is supposed to be temporary, I think). But you can deduct 100% of your lodging, your mileage, etc.
You *do* have a business. You are a self-employed sole proprietor. You don't need to be set up as any type of incorporated entity, LLC, partnership, etc. Doing business under your SS# is fine.
@metro25782 wrote:
@BirdyC wrote:
You absolutely can deduct these expenses, as long as reasonable and necessary. In the past, you could only deduct 50% of your meal expenses, but I believe that for 2021 and 2022, the IRS has made this 100% (which is supposed to be temporary, I think). But you can deduct 100% of your lodging, your mileage, etc.
You *do* have a business. You are a self-employed sole proprietor. You don't need to be set up as any type of incorporated entity, LLC, partnership, etc. Doing business under your SS# is fine.
So when I file the taxes, I have to itemize? Is it still an either/or between standard deduction and itemize?
@metro25782 wrote:
In no way am I arguing...I am just playing "what if". Can I file this on a standard 1040 or one of the schedules? Like my securities have to be listed under Schedule F. Is there a schedule where I'd list business expenses like a stay at the Holiday Inn or is it a totally different form? Do I have to designate myself as a business and have one set of taxes for me and another for my business?
@mystery2me wrote:
You can claim mileage even if you do one shop a year. Google Maps and MapQuest can tell you the driving miles between addresses to help you retrace your mileage.
@Rubi wrote:
Consult with a tax person.
@ceasesmith wrote:
The "threshold" is $400. Any income you earn over $400 in a calendar year (most of us use calendar year as our fiscal year), you must declare the income. Any company that pays you over $600 in a calendar year as an independent contractor (that's us) must provide a 1099 form to you and the gov't. If you work for 6 companies and earn over $600 with each one, you should receive 6 1099 forms.
I personally offset most of my mystery shopping income with the mileage deduction, because the absolute closest shop to me is 45 miles away.