Hi synaps,
You are correct in your description of how you will report your income and deductions. If the 1099-NEC includes all amounts paid to you, whether for your compensation for services or reimbursement of expenses, then you will report the amount on the 1099-NEC as income on Schedule C. You will also report the reimbursed expenses you incurred on Schedule C, which will reduce your net income. You can also include any non-reimbursed expenses connected to your work as a mystery shopper.
For the second part of your question, yes, you can still take the standard deduction when you report business expenses on Schedule C. The decision whether to take the standard deduction or itemize is not related to your business expenses. Expenses which qualify as itemized deductions are different from business expenses and include expenses such as mortgage interest, real estate taxes and charitable contributions.
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Kimberly, CPA for over 30 years
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