When you are an avon rep. do you have to file taxes on ur earnings? If so how much do you take out each time you get paid? I am wanting to become a rep and want to know first about taxes and such to see if it is worth it!
2007-10-18 07:51:34 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes. You need to file a Schedule C or C-EZ. You can deduct from your income any expenses related to earning that income. This includes cost of samples, supplies, advertising, etc. Note: mileage would only be deductible if you had a qualified home office.
You will also have to pay self employment tax if your net income is greater than $400.
2007-10-18 08:40:31 · answer #1 · answered by Mark S 5 · 0⤊ 0⤋
With Avon 40% of the sale price is your commission. From that you would deduct your expenses--auto mileage, samples, supplies, whatever else. The balance is your net profit reportable on IRS Form 1040 Schedule C or C-EZ (go for the EZ) and you pay income tax and self-employment tax if your profit is over $400.
2007-10-18 10:38:46 · answer #2 · answered by Anonymous · 0⤊ 2⤋
Of course you have to file taxes on the income. The amount you'll pay depends on your filing status, total income, and several other things, so there's no easy answer to "how much tax" without a lot more information.
2007-10-18 12:44:26 · answer #3 · answered by Judy 7 · 0⤊ 0⤋