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| *Loan,banking and credit>>>income tax |
I sell Mary Kay & don"t remember what I a required to report on my income taxes. Can anyone help? |
I sell Mary Kay & don"t remember what I a required to report on my income taxes. Can anyone help? The difference between the cost of the merchandise and the amount of money you sold it for, minus legitimate business expenses, is taxable income and must be reported. In additon you are actually supposed to make quarterly payments when you are self employed, although depending on how much you make the IRS may not make an issue of it. If you can afford it it would be a good idea to have an accountant work it out for you. The up side is, if you find out that, after expenses, you actually lost money, that's a deduction from your regular income. But they won't let you keep showing losses forever... the usual limit is three years. Report it on Schedule C. Look up information on Direct Sellers in IRS Publication 17. YOu dont keep an inventory as a direct seller so you dont have to worry about that. If you make very much you might have to make estimated quarterly payments, since there are no withholdings on your earnings, unless witholding is enough from your regular job. If there is underwitholding you could end up paying penalties at the end of the year. You also have to pay Self Employment tax on Schedule SE if you made over $400 in profits. Self employment tax is Medicare and Social Security. When you work for someone else you pay half of it and your employer pays half, 7.65 percent each. When you're self employed you have to pay all of it, 15.3 percent. Hire an Accountant |
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