How do I deal with Fee only payments from Intel 360.

Ex. Shop fee-$125

Shop is at expensive restaurant. You must order 2 entree and 2 alcoholic beverages and tip at least 20%. I spend then entire $125 or tip up to the $125. What do I report for income?

The best advice I can give about handling taxes is to contact a tax professional and/or the IRS Customer Service Line.

Only do those shops at a place you want to go to or you’re subsidizing their business. Not the tax expert but an expense reimbursement is not income.

Crystal -

You can report the $125 as income (as the MSC will likely to do on your 1099). However, you can, on your taxes, then deduct it from your taxable income as a business expense.

Great question and looks like some sound advice in this thread. I would certain speak with a qualified accountant or the IRS in this instance.

Yes, you will have $125 in income, but you will also have $125 in expense. Keep records of both and it is a wash and you won't pay any tax.

That is something to think about.

JEFFRI @ Feb 10, 2020, 2:05:11 PM

Only do those shops at a place you want to go to or you’re subsidizing their business. Not the tax expert but an expense reimbursement is not income.

Thanks Jeff. Most tax people are scared of the mystery shopping thing.

I’ve done *many* high end restaurant shops, up to $500 reimbursement but typically $150 and above. (I’m in metro NYC and have gone this for a while.)

They usually offer another $15-20 which might go as expenses. However, the reimbursed amount from your guest check is NOT assessed as income on a W-9. Only the $15-20. Keep your receipt photos if not the original receipts.

However if they are paying as a fee without requiring a receipt, then yes, you have to count it as income and expense it on your taxes.