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Market Force Tax

May 22, 2022 03:54PM
Just wondering...if Market Force reimburses you for a shop is that taxable?
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More Discussions About Market Force (All Companies)
May 22, 2022 04:12PM
If you are asking whether sales tax is reimbursable, the answer is yes. BUT - the total reimbursement is still capped at what is shown. So, the Many Men shop that I am doing today reimburses up to $15.45. If I go over due to what I order or even just sales tax, I only get $15.45. They do not reimburse for any tips you leave even if on the receipt.
@Lisa1978 wrote:

Just wondering...if Market Force reimburses you for a shop is that taxable?

Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008
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May 22, 2022 04:36PM
@Lisa1978 wrote:

Just wondering...if Market Force reimburses you for a shop is that taxable?

Do you mean are reimbursements reported for income tax purposes? No
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May 22, 2022 05:31PM
If they reimburse up to $10 and you pay $9.90 plus $.82 in sales tax for a total of $10.71, they will reimburse $10.
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May 28, 2022 05:33PM
Possibly if you ask in advance, sometimes they will raise it for you
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May 29, 2022 02:34AM
The fee is taxable income. The reimbursement for the required purchase is not taxable income.
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May 29, 2022 02:38AM
It depends on your individual tax situation. It can be. Mostly not.
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May 29, 2022 04:45AM
Mystery, I do not understand your post. Care to elaborate?
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May 29, 2022 12:38PM
Just saying that a very small percentage of people would benefit from having a higher taxable income (ACHA, EIC, etc.) While I choose to not pay taxes on reimbursements, someone else may be better off taking a different route. Technically, taxable income is any "money, property, or services" received as payment. Obviously, one should not pad their income with frivolous things like reimbursed resort stays and fine dining meals, but other things like gas, groceries, and even a burger would be easily justified. So, when people on this forum and others say mystery shop reimbursements are not taxable, they are just telling part of the story.
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May 29, 2022 02:09PM
I understand. A friend of mine made $38,000 last year mystery shopping, and didn't deduct a single expense, because "every time I take an expense, my refund goes down" (due to EIC).

So I do understand.

Howsoever...perhaps people should be aware that IF you are audited, the IRS WILL deduct expenses, and will charge heavy penalties and interest.

The fact is, reimbursement of REQUIRED business expenses does not generate taxable income.

Also, the chances of being audited at this income level is, while not nonexistent, infinitesimal.
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May 29, 2022 03:14PM
Totally agree. Not deducting something as absolutely necessary as travel expenses in order to get more EIC could land you in trouble. I have read here in the past how some may lower deductions in order to show a profit for the year thinking they may lose their business classification. I think that is unnecessary but harmless nonetheless. Doing it to get a tax refund is a different story. I also agree the reimbursement of required expeditures may not generate taxable income, but if done consistently and without abuse, the value of the reimbursed products and services could be counted as income.
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May 29, 2022 08:30PM
@foodluvr wrote:

@Lisa1978 wrote:

Just wondering...if Market Force reimburses you for a shop is that taxable?

Do you mean are reimbursements reported for income tax purposes? No

There are some MSCs that include reimbursements because they only read the instructions for the 1099 and ignore the rule that says if an expense is reimbursed with a receipt its not included in income.
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