Uh Oh! It’s That Time Again?

Taxes formsJust as we are all looking forward to the warmer temperatures of Spring and spending more times out doors, we are reminded of our obligation to pay our taxes.

No one likes to pay, but it is a necessary evil to keep our country, state and local communities running.

As a mystery shopper and small business owner, there are several ways to decrease your tax burden and possibly even get a refund!

As a mystery shopper, if you earn over $600 in a year with any one mystery shopping company, you will receive a 1099 from that company. It’s the law.

If you are getting one from Market Viewpoint, you would have received it in the last week of January.

First time mystery shoppers are sometimes surprised when they receive their 1099 – and even begin to second guess if it makes sense to mystery shop. Some think, “After taxes, am I really making any money?”

Let us tell you….

You can earn significant income if you are aware of what you can deduct on your tax return.

As an Independent Contractor, you are running a home-based business and are eligible to take certain deductions on your 1040 that will almost guarantee you will not be writing a big fat check to the IRS. (although you may still have to write a little one!)

Do you have a small office or area in your kitchen that you use as office space to look for and apply for shops, print out materials needed for your mystery shop assignments and where you ultimately sit to submit your reports?

Do you drive or take public transportation to your mystery shopping assignments?

Do you use a computer and a printer to conduct your mystery shopping business interactions?

Do you heat your home and use your phone to make mystery shopping appointments?

If you are nodding your head, then you are eligible for home office deductions, mileage expenses (where not reimbursed), transportation costs, cost of office supplies and various other deductions deemed allowable by the IRS.

Tracking Expenses

Keeping track of these expenses and knowing which are allowed and their limits can significantly offset the amount of tax you would owe on monies you earned from your mystery shopping. For some people, depending on a number of other income and tax-related factors, you won’t have to pay taxes on the mystery shopping money you have earned.

These are legitimate IRS deductions and regulations. These are not ways to trick the system or find a loophole. We are not suggesting anything that any independent contractor is not eligible to do

We always advise that you speak to a tax accountant on these matters. A qualified advisor can tell you exactly what is and what is not allowed to be deducted and how you can maximize your return.

With careful record keeping and a good tax advisor, hopefully you will be receiving a check instead of writing one this tax season!

Let us know ways you keep track of your expenses. Please share with others in the comment section below!

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About Market Viewpoint

Market Viewpoint offers comprehensive mystery shopping services, complete customer service audits, employee and customer surveys, customer focused marketing strategies, and customer service training to help you improve your customer service and outshine your competition.
This entry was posted in Business Tip, Market Viewpoint, Mystery Shopping, Small Business Tips and tagged , , , , , . Bookmark the permalink.

2 Responses to Uh Oh! It’s That Time Again?

  1. trisha says:

    how do you declare mystery shopping expenses on the tax form? i am using Turbo Tax and there doesn’t seem to be a place to put expenses in.

    • Trisha – A tax accountant or the IRS could best advise you (I think Turbo Tax even has a team you can contact). Make sure you have indicated that you are self-employed or an independent contractor. That should bring up a series of questions and/or another form for you to complete. Again, finding someone who is in the tax business to give you the correct answer is your best bet.

      Good luck!

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