What Expenses Can a Mystery Shopper Write Off?
As published by WAHM.com
author: Susan Braun
There are many things to learn when you're starting out as a
mystery shopper. Beginners are often discouraged by low pay offers
for jobs that seem to entail quite a bit of effort on the shopper's
part. Or, perhaps you're dismayed that a job offers no outright
pay, but a reimbursement only. Don't worry: mystery shopping can
become more profitable if you consider that many business expenses
for mystery shoppers are tax deductible.
What expenses can a mystery shopper write off?
All-Important Schedule C
Brainstorm all the expenses you have accrued as a result of mystery
shopping. Here's a list to get you started:
Certification Fees
Mystery Shopping Provider's Assocation (MSPA) Certification Fees
- Many shoppers earn a silver or gold certification through MSPA
to make themselves more marketable. If you've done this, the certification
fees are deductible.
Mileage
Mileage to shops and certification - Mileage is a major expense
for shoppers. Document miles driven to shops by keeping a small
notebook in your car and noting mileage from your house to the
shopping target. Also, if you drive somewhere to earn a mystery
shopping certification, this mileage is deductible as well. As
of 2009, the business rate is .55 per mile. This adds up quickly
for most mystery shoppers and is a considerable help to your mystery
shopping income it offsets fees paid to you.
Office Supplies
Miscellaneous office supplies such as printer ink, stamps, printer
paper, pens, folders, and staples are deductible if they were
used for business purposes. Did you purchase extra storage for
a mystery shopping email account? This would be deductible as
well.
Business expenses such as costs to make copies away from home
and fees to fax in reports can be deducted.
Equipment
Equipment such as fax machines, printers, your computer and your
camera (used in many shops) can be depreciated and portions written
off each year. Check with the IRS for specifics on how much to
deduct, which is based on the percentage of business versus personal
use for each item.
A sad but increasingly common fact in the mystery shopping world
is that some business do go bankrupt. What if you completed a
shop for such a company and were never paid? Be sure to document
any expenses you incurred during such a shop, as they are tax
deductible.
Be thorough in documenting your expenses and they will add up.
At tax time, your expenses may even exceed your income as a mystery
shopper, but that's not necessarily a bad thing. Any loss from
mystery shopping can offset income earned from other jobs, thereby
reducing your overall taxes.
