Comments on: Will You Owe Money to the IRS? http://www.mysteryshoppersmanual.com/will-you-owe-money-to-the-irs Tips for being a successful professional shopper Wed, 08 Feb 2012 00:50:21 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Do You File Estimated Taxes? Fourth Quarter 2009 Return is Due | The Mystery Shopper's Manual http://www.mysteryshoppersmanual.com/will-you-owe-money-to-the-irs/comment-page-1#comment-1401 Do You File Estimated Taxes? Fourth Quarter 2009 Return is Due | The Mystery Shopper's Manual Tue, 12 Jan 2010 13:47:11 +0000 http://www.mysteryshoppersmanual.com/?p=926#comment-1401 [...] in mind that because of a change in the withholding schedules during 2009, the amount of income tax withheld from paychecks decreased. That means that many [...] [...] in mind that because of a change in the withholding schedules during 2009, the amount of income tax withheld from paychecks decreased. That means that many [...]

]]> By: Cathy Stucker http://www.mysteryshoppersmanual.com/will-you-owe-money-to-the-irs/comment-page-1#comment-1302 Cathy Stucker Wed, 30 Dec 2009 20:07:21 +0000 http://www.mysteryshoppersmanual.com/?p=926#comment-1302 So is she telling you not to declare any of your mystery shopping income? Or to declare all the income and pay taxes on every cent without deducting any expenses? Either way, she is wrong. You do not need to have a 1099 to declare income, and you may deduct any reasonable and necessary expenses incurred in the course of earning that income. The government kind of frowns on hiding income. But it is silly to pay extra taxes because you didn't deduct legitimate expenses. So declare your income and deduct your expenses. Pay taxes on your profits. Because you are in your first year, it is possible you didn't make a profit. That's OK. You may even be able to write off the loss against other income. So is she telling you not to declare any of your mystery shopping income? Or to declare all the income and pay taxes on every cent without deducting any expenses? Either way, she is wrong. You do not need to have a 1099 to declare income, and you may deduct any reasonable and necessary expenses incurred in the course of earning that income.

The government kind of frowns on hiding income. But it is silly to pay extra taxes because you didn’t deduct legitimate expenses. So declare your income and deduct your expenses. Pay taxes on your profits. Because you are in your first year, it is possible you didn’t make a profit. That’s OK. You may even be able to write off the loss against other income.

]]> By: GloriaH http://www.mysteryshoppersmanual.com/will-you-owe-money-to-the-irs/comment-page-1#comment-1301 GloriaH Wed, 30 Dec 2009 19:59:08 +0000 http://www.mysteryshoppersmanual.com/?p=926#comment-1301 I am retired and have been a mystery shopper for almost a year now. I have not made enough money from one company to receive a 1099. With all the money I've spent on supplies, mileage, etc, my tax person tells me I can't claim any of it unless I receive a 1099 from at least one company. Is she correct? Thanks, Gloria I am retired and have been a mystery shopper for almost a year now. I have not made enough money from one company to receive a 1099. With all the money I’ve spent on supplies, mileage, etc, my tax person tells me I can’t claim any of it unless I receive a 1099 from at least one company. Is she correct?

Thanks, Gloria

]]> By: Last-Minute Tax Deductions for Secret Shoppers - The Mystery Shopper’s Manual http://www.mysteryshoppersmanual.com/will-you-owe-money-to-the-irs/comment-page-1#comment-1199 Last-Minute Tax Deductions for Secret Shoppers - The Mystery Shopper’s Manual Fri, 18 Dec 2009 11:30:17 +0000 http://www.mysteryshoppersmanual.com/?p=926#comment-1199 [...] Making planned purchases during this tax year can be a good strategy if your mystery shopper income along with other employee or contractor income could cause you to pay a penalty because you didn’t make quarterly estimated tax payments. (Estimated tax payments are usually required if you expect to owe at least $1000 more than was withheld from your family members’ paychecks.) Or if you expect to owe taxes or penalties due to underpayment of your 2009 taxes. [...] [...] Making planned purchases during this tax year can be a good strategy if your mystery shopper income along with other employee or contractor income could cause you to pay a penalty because you didn’t make quarterly estimated tax payments. (Estimated tax payments are usually required if you expect to owe at least $1000 more than was withheld from your family members’ paychecks.) Or if you expect to owe taxes or penalties due to underpayment of your 2009 taxes. [...]

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