tax question?

Question

my mother-in-law works and she sales mary k on the side, how does she file her mary k earnings without a w-2 ? any help would be appreciated.

Answer 1

She adds a Schedule C to her return, showing her income from Mary Kay and her expenses. The net profit or loss is then transferred to the income section of the 1040.

If her net profit is $400 or more, she will also fill out Schedule SE, to compute Social Security and Medicare taxes on her Mary Kay business.

Answer 2

She would report any earnings from mary k as self employment income.

If mary k sends a 1099 form, she would use it just like a W-2, keeping in mind that she can reduce this income by subtracting any expenses (like gas mileage, advertising costs - like the costs of printing cards, flyers, etc, as well as the cost of the products that she sold.)

If they don't send a 1099, she would need to add up all of her earnings. She can still reduce the income by her costs.

No matter which way she does it, it would go on her 1040 schedule C.

Answer 3

If she gets a 1099 then she can use that to file, if not, fill out sechedule C with all the information she has. She should keep track of her income and expenses during the year to simplify this.

Answer 4

Schedule C if business, line 21 other income if hobby.