Mystery Shopper's Manual

  • Blog
  • About
    • Privacy/Disclosures
  • The Mystery Shopper’s Manual
  • Mystery Shopping Companies
You are here: Home / Mystery Shopper Taxes / 1099 Forms for Mystery Shoppers

1099 Forms for Mystery Shoppers

January 26, 2009 by Cathy Stucker 6 Comments

tax-formsTax time is here again. You may have already received 1099 forms from some of the mystery shopping companies for which you worked in 2008. Here are some frequently asked questions about 1099s and what you will need to know to file your income tax return.

Will I get a 1099 from every mystery shopping company I did work for in 2008?
You will not necessarily receive a 1099 from every company for which you mystery shopped. Companies are required to provide a 1099 if they paid you at least $600 over the course of the year. Some companies include all payments they made to you when calculating the $600 threshold, and others exclude amounts paid for reimbursements and other expenses.

There were several mystery shopping companies that paid me less than $600 each during the year. Do I have to pay taxes on that money? How do I account for it without a 1099 form?
You are required to report all of your income. You will take deductions for reasonable and necessary business expenses, and pay income and self-employment taxes on your profits.

You must report income, even if you do not receive 1099 forms from some companies. You should have records of your income and expenses for the year, so you can rely on those records when calculating the amount of tax you owe.

When are companies required to send out 1099 forms?
The due date for providing 1099 forms is January 31st. That does not mean that you will receive all 1099 forms by that date. It does mean that the forms must be properly addressed and mailed no later than that date, except that when the due date is on a weekend or holiday, the due date is the next business day.

In 2009, January 31st falls on a Saturday. That means that 1099 forms must be properly addressed and mailed by Monday, February 2, 2009.

What if a secret shopping company paid me more than $600, but I do not receive a 1099 form?
Be sure to allow time for the form to reach you by mail. If you have not received an expected 1099 by mid-February, you should contact the mystery shopping company and ask if a 1099 form was mailed to you.

Whether or not the company provides a 1099 form, you are required to declare the income and pay any tax owed. You can file your tax return without the 1099, as you are not required to include the 1099 with your tax return. Refer to your accounting records to determine the amount of income you must declare.

The 1099 form I received included amounts for reimbursements of required purchases and even some travel expenses the mystery shopping company paid me for. How do I account for that?
You may want to address this with your tax professional, but it is important that you show all of the moneys reported on 1099 forms on your tax return. Amounts you received as expense reimbursements should be deductible as business expenses. That means that you include them in your gross income, then deduct the expenses and pay taxes on the net income.

Filed Under: Mystery Shopper Taxes Tagged With: Accounting, Income tax, Mystery shopping, Self-employment, Tax forms in the United States

« Will Mystery Shopping Companies Stop Sending Me Jobs?
Five Ways to Make Yourself a More Valuable Mystery Shopper »

Comments

  1. Patricia Phillips says

    February 11, 2011 at 6:33 pm

    What IRS code do you use for tax purposes?

    Reply
    • Cathy Stucker says

      February 11, 2011 at 7:06 pm

      I don’t know the number off the top of my head, but “Consulting” is a good generic category for mystery shoppers.

      Reply
  2. Katie says

    June 18, 2012 at 12:34 pm

    I am usually a dependent on my mother’s taxes. Do I have to file my own now or is there a way to still put it on my mother’s?

    Reply
    • Cathy Stucker says

      June 18, 2012 at 12:56 pm

      The income is reported under your Social Security Number, so you would have to report it if you hit the level where you have to file/report.

      Reply
  3. Katie says

    June 20, 2012 at 1:17 am

    So If I don’t make $600, I don’t have to file/report it?

    Reply
    • Cathy Stucker says

      June 20, 2012 at 7:45 am

      I am not sure what the law is about reporting if your total income is less than $600 for the year. Check with the IRS.

      If you are required to file a tax return and report your income, that means ALL of your income. If a particular company paid you less than $600 in a year, they are not required to send a 1099, but you are still required to report that income along with any other income you had for the year.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Mystery Shopping Companies

Updated 4/20/18! Access my free curated list of more than 150 legitimate mystery shopping companies.

Scam Warning

If you received a check or money order with instructions to cash it and wire money to someone, DON'T DO IT! This is a scam.
Click here to learn more about
mystery shopper scams.

Get ‘The Mystery Shopper’s Manual’

NEW 7TH EDITION!

Get your personally autographed copy of The Mystery Shopper's Manual here.
mystery-shoppers-manual-3d

Connect with Cathy

Follow Me on FacebookFollow Me on Google+Follow Me on TwitterFollow Me on LinkedInFollow Me on YouTubeFollow Me on PinterestFollow Me on RSS

Recent Articles

  • Do Millionaires Mystery Shop?
  • Mystery Shopper Resolutions
  • Mystery Shopping for Mystery Shopper Pros
  • Keep the “Secret” in “Secret Shopper”
  • The McDonald’s Receipt Hack

Categories

Applying to Mystery Shopping Companies Customer Service Dealing with Mystery Shopping Companies Dealing with Shopping Emergencies Employees and Mystery Shopping Grammar and Spelling Green Mystery Shopping Hazards of Mystery Shopping Holiday Mystery Shopping How to Become a Mystery Shopper Identity Theft Independent Contractor Issues Industry News Make Money Online Memory Improvement Money and Mystery Shopping Mystery Shopper Certification Mystery Shopper Ethics Mystery Shopper Fun Mystery Shopper Jobs Mystery Shopper Scam Mystery Shopper Scheduling Companies Mystery Shopper Secrecy Mystery Shopper Taxes Mystery Shopper Tools Mystery Shopping Clients Mystery Shopping Company Mystery Shopping Pay Mystery Shopping Providers Association Mystery Shopping Recordkeeping Mystery Shopping Resources Online Security Opportunities for Mystery Shoppers Preparing for the Mystery Shop Profitable Mystery Shopping Secret Shopper How-To Secret Shopper Quick Tips Secret Shopping and the Law Secret Shopping Confidentiality Sticky Secret Shopper Situations Technology and Secret Shopping Types of Mystery Shops Video Mystery Shopping Working Online Writing Mystery Shopper Reports

Copyright © 2004 - 2022 · Cathy Stucker

Copyright © 2022 · Beautiful Pro Theme on Genesis Framework · WordPress · Log in