Doing your taxes when you’re an Independent Contractor

Shannon Scarberry Field Staff Coordinator for IntelliShop (http://www.intelli-shop.com/) offers this helpful information for doing your taxes as an Independent Contractor.

As an independent contractor you will be responsible for filing your own taxes each year. Each company you do work for will mail you a 1099 form. Some companies will only issue a 1099 form if you make 600.00 per year. If you do not receive a form and you made 599 or less, odds are you won’t receive the form as your income was not reported to the IRS. Your mystery shopping income includes all fees you were paid and may include your reimbursements.

You will be able to deduct some of your expenses as a mystery shopper. This may include, but is not limited too, mileage, car expenses including gas, postage costs, a portion of your internet bill, etc. You may even be able to deduct some home expenses if you use your home as your primary office. As an independent contractor, you should file a Schedule C, where you claim business expenses as a deduction of income.

If you are interested in becoming a full time mystery shopper and expect to make a significant amount of money over the course of a year, you may want to think about filing your taxes quarterly based on your estimated guess of your income for the year.