Taxes

Are reimbursements considered taxable income?

This is what I was talking about: (Sharon Riley an accountant' s advice)
http://forums.delphiforums.com/n/main.asp?webtag=justshop&nav=messages&prettyurl=%2Fjustshop%2Fmessages

" We have communicated in the past but I have another question or two. How do we list what we actually spent out of our own pockets and that gets reimbursed? Is this taxable income since it was ours to begin with and taxed once already ? I have made a spread sheet up for total yearly income by company and another one for total yearly reimbursed expenses by company to try to gleen a better idea of actual income. Even having done so, I am still lost with how to list it on the schedule C form."

Response:

" List the FEEs you make on Schedule C, Line 1. List the REIMBURSEMENT FOR EXPENSES, on a supporting statement, on Line 6. Then list the REIMBURSED EXPENSES on Line 48. That' s the collection of blank lines at the bottom of the Schedule C, page 2. "

Q: " Also, how should I mark line F on schedule C? Cash, Actual, other? I am not sure what this means and their explanation leaves me wondering even more. "

A: " This is a technical point. We usually flag OTHER and write in HYBRID. This means that you count the money you received when you have it in your HAND. You count the expenses you incurr when you incurr them whether or not you' ve paid them yet.

However, cash method will do fine."

Q: " I am trying to get all my " eggs in a row" so that I can get this filed and out of my face. Thank you for your invaluable help. Hopefully next year will be much better."

A: " It' s a new skill. You' ll get better at it. Think of it like learning to play Tennis."

Hope this helps!
-Scarlett

I worked for H&R Block for a couple of years and I would be happy to answer any questions on taxes.

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I've been thinking about taking H&R Block's tax course. I could do my own taxes, and who knows, maybe I can supplement my income even more!

Can you deduct any expenses for shopping expenses that were not reimbursed? If I went mysteryshopping and made a purchase is that deductible? Is any of the things I buy as a mystery shopper deductible?

Hello all,

I am new to the forum, but not new to mystery shopping, lol. 

My mom and I both mystery shop and also own a tax business - Alpha Omega Tax Service - in Crowley, LA. If anyone has tax questions, we offer free estimates and answers. Together we have over 45 year experience and specialize in small business and trucker tax returns. We prepare taxes for individuals in many different states - our software has every state return that is needed. 

If you are self-employed and you do not stay up to date with IRS information, please at least have someone look over your taxes for you.  Most major companies give free estimates - which means they will prepare you return ( I suggest this as a double check) and you owe them nothing for it.  My mom & I have worked at H&R Block, Jackson Hewitt and Liberty Tax Service. 

Anyway..I'd be happy to pm you my cell phone number if you have questions - sometimes it's difficult to answer questions correctly in a quick response. We try to evaluate your tax situation and determine what is best for YOU - not just a general answer.

Hi, I haven't signed up yet for the mystery shopping, just signed up for the forum, but I am interested in it.  I'm trying to learn as much as I can before I'll hand over my SSN...
 
Anyway, if mystery shopping is your only source of income (at the moment), you'd still have to file taxes, right?  And also.. if anyone could direct me to the proper board/thread for general mystery shopper questions, ex. "How do I know this site isn't a scam like many others?", I'd appreciate the help. :)  Thanks.

I work for H and R Block during tax season.  I suppliment my income by mystery shoppin during the off-tax season.  If you pay for something out of your pocket with after tax dollars then when you are re-imbursed by the company....it is called a wash and you do not count it as income.  However, you need to keep all your receipts for three years.  If you happen to be audited then you will have to show where you paid for the expense up front with your after tax dollars.   It is good to keep a list. but keep all receipts.  If you happen to get a 1099 and it shows the reimbursements-dont count it as income.  Also if you count having a home office.-  that area cannot be used by anyone, not even to store personal files.  You have to take depreciation off your house for a home office.  When you go to sell the house then you will have to pay back for the gain from the depreciation.  
When you start work for H & R block you don't get many schedule C's because the prior preparers get priority.  I had to take over 200 hours of their courese to get small business certified.  It is a great part time job but you can't count on the income after the tax season is over.  If you want to try it then email me for a refferal and you get a deduction on the cost of the course.

Good information to ponder - THANK YOU