Required purchase over reimbursement

Quick question:

I am doing some online curbside grocery shops. The reimbursement is $20. However, I found out the minimum order for curbside is $35. I'm okay with it because I'm still getting free groceries, but, when I do my taxes, I can count that extra $15 as an expense, right, since it was required for me to be able to complete the job?

I've done shops where reimbursement might be $20, with no minimum, and I'll usually go a little over to make sure I get the max reimbursement, but, it's not *required* and I just eat the extra 50c or whatever. But, this is different, no? It's the first year I'm doing significant mystery shopping, and I'm keeping track of mileage, parking, etc., so I want to make sure I'm doing everything correctly without missing potential business expenses.

Edited 1 time(s). Last edit at 10/28/2023 01:11PM by mysterioso412.

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More About Reimbursements

mysterioso states-- The reimbursement is $20. However, I found out the minimum order for curbside is $35. I'm okay with it because I'm still getting free groceries.

Bob comments--MSCs love shoppers who are willing to accept partial reimbursement AND who believe their reward is free.

@shopperbob wrote:

mysterioso states-- The reimbursement is $20. However, I found out the minimum order for curbside is $35. I'm okay with it because I'm still getting free groceries.

Bob comments--MSCs love shoppers who are willing to accept partial reimbursement AND who believe their reward is free.

I didn't know the minimum order for curbside was $35 before accepting the job. I'd be buying the groceries anyway, and there's a shopper pay in addiiton to the reimbursement, so, I don't feel the need to cancel. I'm just looking for an answer to my question.

Is this for the ALDI jobs posted yesterday? Does "in store pick up" mean curbside? I wrote for an answer both thru Sassie and the regular email and haven't received an answer.

Nothing is "free" and "in store pick up" does not mean "curbside pick up". Unfortunately, nowadays it seems that many shops need to be researched before accepting/commiting to them. The shopper needs to spend their own "free" time researching whether or not the shop is feasible. IPSOS. I've noticed a handful of their e-commerce grocery shops don't add up. Payment is $10 with reimbursement of $20 for curbside or instore pick up. However, a particular grocer has a minimum order requirement of $35. And it's on you, the shopper to research if the shop they have listed as "instore" even offers instore pickup. Also, out of stock items can be an issue. Regarding IPSOS, it's been my experience that they will provide incorrect location or contact details for a shop and reduce the payment fee because the shop couldn't be completed due to the incorrect details they provided.

MSC's don't provide FREEBIES. Nothing is FREE for the shopper. To anyone experiencing food insecurity, please look in to SNAP, Supplemental Nutritional Assistance Program.

It's not Aldi.

I'm a teacher; while I'm salaried, if I break that salary down according to the hours I am contracted to work (not counting the hours outside of the "contract"

, I know what my hourly rate is. Since I am going to buy groceries anyway, I suppose another way to think of it is I got paid $30 for that job, which is only slightly less than I get for teaching. And no one bit me, hit me, threw something at me, or threatened to kill me while doing the shop. Stringing together these shops means I can save more now and then not have to teach summer school.

I hope a more experienced shopper actually ANSWERS the question you posted, but I believe that if you have to spend more money to fulfill the shop requirements it can be counted. My spreadsheet has columns for the reimbursement amount, the amount I spent, and the amount not reimbursed.

Happiness is not a goal; it is a by-product. Eleanor Roosevelt

Ask the person who does your taxes. Please don't listen to anyone else. The rules change every year.

Your answer was MUCH better than mine!

@Rubi wrote:

Ask the person who does your taxes. Please don't listen to anyone else. The rules change every year.

Happiness is not a goal; it is a by-product. Eleanor Roosevelt

Good question. I'm just returning to mystery shopping, etc. after a decade hiatus. I'm going to talk to a tax professional to find out what current rules allow. The best I can remember from ten years ago, I was able to deduct overpayments as a job expense. That may not be the case anymore. I keep records assuming I can, but won't know until I go to file next year.

Regarding these jobs specifically, none of the five locations I selected had the scenario I was supposed to follow. I submitted the reports as such along with a screenshot showing that the pick-up method was not offered at that particular location (e.g. in-store pick up is not the same as curbside pick-up). Two of the five jobs have been reviewed. One was rejected since the service was not offered. Just minutes after receiving that notification, the very same editor graded and approved another one, even though I could not complete the shop because the service wasn't offered. Go figure.

Never Complain, Never Explain.

I would deduct the additional $15 on my taxes as an unreimbursed expense since it was required to complete the shop. My spreadsheet would reflect that.

@mysterioso412 wrote:

It's not Aldi.

I'm a teacher; while I'm salaried, if I break that salary down according to the hours I am contracted to work (not counting the hours outside of the "contract", I know what my hourly rate is. Since I am going to buy groceries anyway, I suppose another way to think of it is I got paid $30 for that job, which is only slightly less than I get for teaching. And no one bit me, hit me, threw something at me, or threatened to kill me while doing the shop. Stringing together these shops means I can save more now and then not have to teach summer school.

Of more importance (IMO)...have you evaluated your 403b plan selection and fees? Most school boards take advantage of their teachers with 403b plans that have high fees, poor selection of offerings and get kickbacks from the insurance companies selling such products.

The amount you are required to spend over the reimbursement amount, regardless of the shop pay, is an unreimbursed expense for your taxes.

You are still selling yourself short.

Where I live, you need to pay a fee for this service in addition to the minimum order. Make sure to check this for your store.

This, 100% this! Since I have a 9-5 I used mystery shopping for pocket change and to supplement things I would do/buy anyway. I did a Harris Teeter shop this AM. I was going there anyway, I was buying meat anyway, so why not spend 15 minutes on a report to save $30 on my normal expenses?

@mysterioso412 wrote:

It's not Aldi.

I'm a teacher; while I'm salaried, if I break that salary down according to the hours I am contracted to work (not counting the hours outside of the "contract", I know what my hourly rate is. Since I am going to buy groceries anyway, I suppose another way to think of it is I got paid $30 for that job, which is only slightly less than I get for teaching. And no one bit me, hit me, threw something at me, or threatened to kill me while doing the shop. Stringing together these shops means I can save more now and then not have to teach summer school.

Is there payment, or just the reimbursement? If you got $20 payment for example, and $20 reimbursement it could be feasible to take the $35 as an expense...but if you are just getting a $20 reimbursement then there was no income to be reported, and you have no profit motive so taking $15 expense wouldn't be the best practice.

"The amount you are required to spend over the reimbursement amount, regardless of the shop pay, is an unreimbursed expense for your taxes."

Is this something the complaints about Five Guys shops cover--having to order a sandwich, fries, and drink but the expenses are more than reimbursement?

Deleted

Edited 1 time(s). Last edit at 10/30/2023 08:44AM by Madetoshop.

@Morledzep wrote:

The amount you are required to spend over the reimbursement amount, regardless of the shop pay, is an unreimbursed expense for your taxes.

You are still selling yourself short.

Where did you get that information? I don't think it would fly on an audit. A business expense requires a profit motive, and when you are knowingly engaging in an activity that has no profit potential then it is a hobby and you can't take expenses at all.

5 Guys would be completely different. You are being paid, often generously, and you might go over by a dollar or so to get the required items. There is a legitimate profit motive.

Edited 1 time(s). Last edit at 10/31/2023 12:28AM by bradkcrew.

Your logic seems very strange to me. No, you do not need to spend $35 to do the shop. You have to spend $35 to get a free pick up. Those are two different things. Does the job require you to get a free pick up? You did not mention that so I am thinking it is not a requirement of the job but a choice of yours. So from my non professional view you cannot write off the additional groceries you purchased for the reason that the shop is not worth it to you if you have to pay a pick up fee. This is not a requirement of the job so not deductible. However, the good news is if you only order the $20 of groceries required for the job you can write off the cost of the delivery or pick up fee. That is something required in order for you to do the job.

I would love to find any CPA (or IRS tax auditor) who agrees that ordering $15 extra of groceries is a reimbursable business expense when the job only requires $20. I agree that the pickup fee is an expense (as is your mileage).

It only matters if you are audited so you takes your chances. Some people like to push the limits.

If you have other complicated tax issues and take other deductions that are known to trigger audits then be careful.

Edited 1 time(s). Last edit at 10/31/2023 01:53PM by melg.

A number of the grocery retailers are changing their pickup fee structure. It's worth checking before accepting the job. It may be that the payment has increased from an even lower amount to cover that. I used to do some delivery jobs that were only $15 and whatever bonus you could wrangle from the scheduler. That needed to cover a liquor purchase, delivery fee plus whatever else you wanted and you had to hope there were no out of stocks. I haven't seen them posted recently and wouldn't take one again.

Edited 1 time(s). Last edit at 10/31/2023 02:09PM by melg.

I am quoting myself as in re reading today what your original question was there is no mention of a delivery fee. I am pretty certain that when you first wrote your question it stated there was a delivery fee if you ordered less than $35. I see that you have edited your original post once and now there does not seem to be any mention of a delivery fee if the order is under $35 and it now seems the store does not allow an order of less than $35. So based on what my brain thinks is changed information if you cannot even make an order that is less than $35 at this store and are not allowed by the store to order less than $35 yes, I think the write off of the rest could be allowable by the IRS. I say could be as I am not an expert in this.

@sandyf wrote:

Your logic seems very strange to me. No, you do not need to spend $35 to do the shop. You have to spend $35 to get a free pick up. Those are two different things. Does the job require you to get a free pick up? You did not mention that so I am thinking it is not a requirement of the job but a choice of yours. So from my non professional view you cannot write off the additional groceries you purchased for the reason that the shop is not worth it to you if you have to pay a pick up fee. This is not a requirement of the job so not deductible. However, the good news is if you only order the $20 of groceries required for the job you can write off the cost of the delivery or pick up fee. That is something required in order for you to do the job.

This particular store requires a $35 minimum order for curbside pickup. It will not allow you to submit an order that does not total at least $35. They don't charge for curbside pickup, but you can't order less than $35 in groceries. The job required curbside pickup (in fact, I had to cancel a second one because the second store doesn't do curbside pickup).

ETA: Straight off the grocery store's website:" Is there a fee for placing an order?
Pick-up orders are now free! Grocery home delivery orders have a service fee of $9.95. There is a $35 minimum on all orders."

@sandyf wrote:

Your logic seems very strange to me. No, you do not need to spend $35 to do the shop. You have to spend $35 to get a free pick up. Those are two different things. Does the job require you to get a free pick up? You did not mention that so I am thinking it is not a requirement of the job but a choice of yours. So from my non professional view you cannot write off the additional groceries you purchased for the reason that the shop is not worth it to you if you have to pay a pick up fee. This is not a requirement of the job so not deductible. However, the good news is if you only order the $20 of groceries required for the job you can write off the cost of the delivery or pick up fee. That is something required in order for you to do the job.

Edited 1 time(s). Last edit at 11/01/2023 11:23PM by mysterioso412.

ETA: Straight off the grocery store's website:" Is there a fee for placing an order?
Pick-up orders are now free! Grocery home delivery orders have a service fee of $9.95. There is a $35 minimum on all orders."

Where is curbside mentioned from the above? Is it an option from this grocer? Perhaps the $20 is inclusive of the grocery order and a curbside fee. If you want to spend another $15 to get curbside free of charge, it is not an expense. However, it is prudent to do so IMO.

Based upon what your post says after you edited it, the extra $15 is now a required purchase by the store, so the extra $15 is a deductible business expense. However, a deductible business expense only reduces your taxable income. This means that you "save" the income tax on the $15. For simplicity, let us assume that you are in the 33% tax bracket. As a deductible expense, your taxable income is reduced by $15 and you save $5 on the income tax that you owe. In the end, if you spend $35, you are reimbursed for $20 and you get $5 back when you file your income tax, so the $35 in groceries costs you $10. Were these available in my area, I would do it since this is a great discount assuming that I can order items that I use and the report is not onerous. [If you are in the 10% income tax bracket, the savings on your taxes are only $1.50 so $35 in groceries would cost you $13.50 which is still a substantial discount.]

@mysterioso412 wrote:

Quick question:

I am doing some online curbside grocery shops. The reimbursement is $20. However, I found out the minimum order for curbside is $35. I'm okay with it because I'm still getting free groceries, but, when I do my taxes, I can count that extra $15 as an expense, right, since it was required for me to be able to complete the job?

I've done shops where reimbursement might be $20, with no minimum, and I'll usually go a little over to make sure I get the max reimbursement, but, it's not *required* and I just eat the extra 50c or whatever. But, this is different, no? It's the first year I'm doing significant mystery shopping, and I'm keeping track of mileage, parking, etc., so I want to make sure I'm doing everything correctly without missing potential business expenses.

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

Edited 1 time(s). Last edit at 11/02/2023 04:05AM by myst4au.

I don't do the 403B for exactly that reason (and there's no employer match). There have been a group of teachers with far more knowledge than me who have been trying to get the plans changed, but haven't been successful. Our district does a lot of shady stuff concerning our money, and that's only one thing.

@maverick1 wrote:

@mysterioso412 wrote:

It's not Aldi.

I'm a teacher; while I'm salaried, if I break that salary down according to the hours I am contracted to work (not counting the hours outside of the "contract", I know what my hourly rate is. Since I am going to buy groceries anyway, I suppose another way to think of it is I got paid $30 for that job, which is only slightly less than I get for teaching. And no one bit me, hit me, threw something at me, or threatened to kill me while doing the shop. Stringing together these shops means I can save more now and then not have to teach summer school.

Of more importance (IMO)...have you evaluated your 403b plan selection and fees? Most school boards take advantage of their teachers with 403b plans that have high fees, poor selection of offerings and get kickbacks from the insurance companies selling such products.

Per shop instructions, you can order anything you want as long as they are items "typically purchased in a grocery store"

The instructions don't say anything about coupons, and since this store often offers digital coupons, I've been shopping the sales and coupons, and comparing final prices with Aldi to make sure I'm not paying more than I should (because this store is more expensive than Aldi, but can be cheaper when sales and coupons run). OR I've been buying things that Aldi doesn't carry, like ladyfinger cookies for tiramisu, that I would have to buy at this store anyway if I wanted them.

@myst4au wrote:

Based upon what your post says after you edited it, the extra $15 is now a required purchase by the store, so the extra $15 is a deductible business expense. However, a deductible business expense only reduces your taxable income. This means that you "save" the income tax on the $15. For simplicity, let us assume that you are in the 33% tax bracket. As a deductible expense, your taxable income is reduced by $15 and you save $5 on the income tax that you owe. In the end, if you spend $35, you are reimbursed for $20 and you get $5 back when you file your income tax, so the $35 in groceries costs you $10. Were these available in my area, I would do it since this is a great discount assuming that I can order items that I use and the report is not onerous. [If you are in the 10% income tax bracket, the savings on your taxes are only $1.50 so $35 in groceries would cost you $13.50 which is still a substantial discount.]
@mysterioso412 wrote:

Quick question:

I am doing some online curbside grocery shops. The reimbursement is $20. However, I found out the minimum order for curbside is $35. I'm okay with it because I'm still getting free groceries, but, when I do my taxes, I can count that extra $15 as an expense, right, since it was required for me to be able to complete the job?

I've done shops where reimbursement might be $20, with no minimum, and I'll usually go a little over to make sure I get the max reimbursement, but, it's not *required* and I just eat the extra 50c or whatever. But, this is different, no? It's the first year I'm doing significant mystery shopping, and I'm keeping track of mileage, parking, etc., so I want to make sure I'm doing everything correctly without missing potential business expenses.

Pickup is curbside. They don't do in-store pickup of online orders. If you order online, it's either curbside or delivery. And the shop instructions require an online order.

@Madetoshop wrote:

ETA: Straight off the grocery store's website:" Is there a fee for placing an order?
Pick-up orders are now free! Grocery home delivery orders have a service fee of $9.95. There is a $35 minimum on all orders."

Where is curbside mentioned from the above? Is it an option from this grocer? Perhaps the $20 is inclusive of the grocery order and a curbside fee. If you want to spend another $15 to get curbside free of charge, it is not an expense. However, it is prudent to do so IMO.

Edited 1 time(s). Last edit at 11/03/2023 11:41AM by mysterioso412.

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