Question on Filing Taxes


Kent_15351299439608
6 years +1 Kent_15351299439608 1

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!

Mark_15033271798928
6 years (Edited 6 years) +1 Mark_15033271798928 6

That is the safest strategy. Remember to expense transportation/mileage as well. Welcome.

WVWildflower
6 years 0 WVWildflower 5

That is correct. I am seconding the above post.

Norm
6 years 0 Norm 191

Ditto. Just to be sure to keep accurate records, and in separate categories. Otherwise, somebody somewhere might get the idea that your double dipping when filing your taxes.

Leza
6 years +1 Leza 1

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 :)

Phillip_15358934488837
5 years +1 Phillip_15358934488837 3

Please seek advice from a tax professional. This is a forum and posts are subject to opinion. You are responsible for how you report your taxable income.

Eleisha_15483030992976
5 years 0 Eleisha_15483030992976 1

I'm new to the business due to the VA dragging their feet in getting my shoulder and elbow fixed. I cant work a normal job anymore. I am loving these jobs I go to 4 states and my own state of Tenn which is a no state tax state. But I am pretty sure these other states are state taxed. Do I have to fill out a tax form for each state?

MFJohnston
5 years 0 MFJohnston 388

You only have to file in your state of residence. I live in Washington State, were we don't have a state income tax, either.


Reading this thread: