I sold avon for 6 months. Do I have to claim it on my taxes?

Question

I hardley made any money, I had under 1000 in sales, and most of the sales were purchases I made for myself.

Answer 1

I'd think that you could reasonably look at the items you bought for yourself as buying them from the company at a discount from the list price, rather than as earning a commission on those sales. If your total income (not counting the items you bought for yourself) was over $400, then you'd be responsible for filing a tax return and paying self-employment tax on it. That's income, not sales - so if your sales were $500 and you earned 40% commission, then your income would just be the $200, which would be below the limit to have to file.

If you are already filing a return, either because you had other income than the Avon, or because you are filing a joint return with a spouse who had income, then you would have to report whatever income you had from Avon sales other than items you bought for yourself.

Answer 2

The other answers are correct with the $400 figure, BUT Avon will only report that you had sales of over $5,000 to the IRS. If you sold less than $5,000, the IRS won't know until you tell them. If you do sell over $5,000 you receive a 1099 from Avon. (you would have gotten it mid February)

If you do claim your Avon business on your taxes, remember brochures are a sales expense as are bags, samples, business cards, and any other business supplies you may have purchased.

Answer 3

You will need to pay taxes only on the profit you made. I hope you kept good records of your purchases and sales.

Answer 4

All income is taxable, hence the name income tax. Want to stop this ridiculous punishment for those with entrepreneurial spirit? So do I, support Americans for Fairtaxation, www.fairtax.org

Answer 5

you personal purchases do not count. if your sales excluding personal purchases were more than $400 then you must file for self employment income.