I'm new to Secret Shopping and wanted to find out how everyone reports income when they file their taxes. Do you report all of the money you earned and then the expenses as well?
i.e. I go to a restaurant and it's required I order $15 worth of food and then get paid $18 as a reimbursement.
Should I file $18 as income and then the $15 as a business expense?
Thanks in advance for the advice!
I've been self employed since the late 90s and can't emphasize the importance of keeping your records in order, your receipts (which I suggest you take photos of every time you are handed one) separated by month for the current year, then once you file your taxes at the end of the year, attach them to that tax return with copies of any IRS forms you may have been sent and keep those copies somewhere safe (I have a water and fireproof lock file box, for instance) for TEN years; per IRS regulations. Remember, you CAN deduct things like mileage, gas, depreciation/use of your vehicle (although it could've changed as of 2018), your home office/area of your home used for business use, your business equipment, percentage of utilities, etc. But you've also got to remember that WE are the folks that are the most likely to be targets of IRS audits as small business owners or sole proprietors. Always best to cover all bases :)