Taxes and shopping
Sch. C or C-EZ. Detailed is best; I've seen it done both ways. You don't want to raise any red flags. Mileage will just about make it a wash for most.
You need to claim all income, even from the company that you only did one $10 shop for during the year. You will not get 1099s from most of the companies you work with, but that does not mean that the information about what they sent you is not part of their records of business expenses to IRS.
Where I receive a 1099 from a company, the 1099 gets entered as part of the Schedule C process. Otherwise I lump all the rest of the money together as a single entry of 'other income' on the Schedule C. I have the backup documentation of my shop sheet to show who paid me how much and reimbursed me how much.
Where I receive a 1099 from a company, the 1099 gets entered as part of the Schedule C process. Otherwise I lump all the rest of the money together as a single entry of 'other income' on the Schedule C. I have the backup documentation of my shop sheet to show who paid me how much and reimbursed me how much.
As I have no 1099's, I would just lump it all together as mystery shopping income. I am self-employed, I am only one company, and the MSP's are my clients. And my job list has details if I ever get audited.
Of course this is in addition to my primary business, making my taxes very complex. Thankgoddess for TurboTax.
Of course this is in addition to my primary business, making my taxes very complex. Thankgoddess for TurboTax.
sneakers Wrote:
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> As I have no 1099's, I would just lump it all
> together as mystery shopping income. I am
> self-employed, I am only one company, and the
> MSP's are my clients. And my job list has details
> if I ever get audited.
Really? I have probably 6 them coming this time around.
In one sense, its easier, in another, I wonder if this is a red flag for the IRS if you "break even"....
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> As I have no 1099's, I would just lump it all
> together as mystery shopping income. I am
> self-employed, I am only one company, and the
> MSP's are my clients. And my job list has details
> if I ever get audited.
Really? I have probably 6 them coming this time around.
In one sense, its easier, in another, I wonder if this is a red flag for the IRS if you "break even"....
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“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
I rarely get 1099s but you don't need them anyway as long as you keep good records. The 1099 is a requirement for the MS companies to report to IRS. One year, SI messed up their 1099s they sent out and didn't send corrected ones till March. I had already filed using my figures anyway since I knew mine were correct, not theirs. They don't even send 1099s anymore since they are based in Canada and are not required by the IRS. Guess only American based companies have to adher to that.......
dee--This was my first year, but I don't think I made $600 from any given MSP. I don't make very much from shopping altogether and I'm thinking of getting some other part-time work instead.
Sneaks, and you sound like such an old hand at this! You are probably a fabulous shopper. I know you have said there is too much competition there for not enough jobs. This is my first year in several doing LOTS and LOTS of shops as we needed the income. Now more than ever. If you do leave shopping, please stay in touch with me. Or all of us, as you give us good insight, IMHO.
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“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
I started last Jan 20. Too much competition, very long rotations on some clients (180-360 days.) lost a few good clients when they switched to cheaper MSP's. I'm making under $500 many months. I've stayed with it because I can flex the hours around my primary business.
I've been shopping about two years. For me, this could not support a lifestyle. Mystery shopping supplements our income. It is something I can do, without committing to a real job. I enjoy mystery shopping because it helps me fill spare time, make extra money, allows freedom of choice, gets me out of the house, keep sharpening skills, do something constructive and interact.
I participate in other forums, as well as this one. Personally, I prefer this forum and have benefitted from its members the most. With the help here, I have learned much. My first year and a half, I was making $150-$200/month. The past three months, I made $570, $654, and $745. I don't look at it as how much I make per hour. It's more than I'd make if I didn't do it. And, I don't have a "real" job. Taking a real job, I could bring home a bigger paycheck - but I don't want a real job.
I participate in other forums, as well as this one. Personally, I prefer this forum and have benefitted from its members the most. With the help here, I have learned much. My first year and a half, I was making $150-$200/month. The past three months, I made $570, $654, and $745. I don't look at it as how much I make per hour. It's more than I'd make if I didn't do it. And, I don't have a "real" job. Taking a real job, I could bring home a bigger paycheck - but I don't want a real job.
Good job, Mert! My primary business was full-time for years. Now it's down to part-time, and I need the shopping income, but that's not a steady amount either. I can't sit by the computer 24/7 to grab the shops before they're gone.
We needed the shopping income b4 my hubby's lovely 80% cut in pay dec. 1. Now, its not needed-its a lifeline. But I have been running ragged between finals time at school, one of the two busiest months for faculty, and taking every decent shop I can get, plus my FIL had open heart emergency surgery this week, and my MIL fell and was in the hospital on the weekend. Its been a lovely xmas-NOT! :-(
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“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
Eeek and yuck! May the New Year see a major normalization of it all 
Thanks Flash. We just negotiated with the bank to refi the suv (more money overall, but less per month, and no payment this month, which we needed, and got a $500 rent reduction from our landlord for the next 2 months, by which time we either have to say we will move, or that we can pay the rent, but for right now, we were panicked and its helping. Tough week. Next week, no school, everything should look better...
I got some extra flaked grocery shops for the weekend too, so I'll do 56 shops this month if I don't get any more. Decent. But nuts when I was working too. ONly have done that many in summer when I've been off.
And hopefully the inlaws health will improve.
I got some extra flaked grocery shops for the weekend too, so I'll do 56 shops this month if I don't get any more. Decent. But nuts when I was working too. ONly have done that many in summer when I've been off.
And hopefully the inlaws health will improve.
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“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
Unless things are VERY different there than here you will probably have a problem even finding the lower cost apartments. Your landlord would not like to have his place vacant for what could be a verrrryyy long time in this market, so if you have been decent tenants he/she will be willing to negotiate a lowered rent reduction for perhaps 12 months once your 2 months are up. "A bird in the hand is worth two in the bush" He/she may want to do it on a month-to-month basis while he keeps the door open for full price tenants, but you really don't want to do that because should he find one you would have short notice to find some place else. Compromise with something you are comfortable with (3 mo, 6 mo, 12 mo). My sense of the economy as a whole is that it will probably be the second half of next year before we 'bottom' and can start crawling back up. The longer it takes, the slower the recovery will be because every month down destroys more of the financial wherewithal of the consumer.
Its really different here: little rental housing, high prices, lots of international students for UHM and the CC's, etc. There are low cost places available, but not in neighborhoods we want to live in, and we also have to factor in bussing around me and the kid since we only have one car...
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“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
“Lying in bed would be an altogether perfect and supreme experience if only one had a colored pencil long enough to draw on the ceiling."
~Gilbert K. Chesterton
I've been using HR block for free for ages. This year is my first to claim for mystery shop income and they said that I have to pay 14.95 for using that schedule C.. yikes.. Does anyone know if Turbo tax is free?
I believe that TurboTax has a free version but even the cheaper versions don't have the full walk-you-through Schedule C. My reaction is stick with what you know and are comfortable with and pay for the version that offers Schedule C support at least your first year of reporting. Of course if you have to pay for software to do the Schedule C versus it being free without a Schedule C, I would make some notes to be sure to deduct the cost of the software from the year in which you buy it as a business expense against my shopping business. I.e. if in 2009 you spend $14.95 for the software to file your Schedule C for 2008, then $14.95 would be a 2009 business expense of your mystery shopping business.
This will be my first year filing as an MS, and it isn't that much, 2009 a little more. Where I live the shops are few and far between, and the ones that are here don't pay alot. Anyway....look at filing on line. IRS web site has a bunch of places to file, and a lot don't charge if your total income is under a certain amount. I used the on line Turbo Tax site for years. DH was active duty with a bunch of deployments and they always found more in refund than I did.(I always did it up by hand first) It is easy to do. It also files state tax forms.
Maureen
Maureen
It is especially recommended that this year you use software for tax return if you did NOT receive the stimulus check last year because your 2008 situation may make you eligible retroactively to collect it and IRS won't hunt you down to offer it to you.
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