Thank you, Kimberly! That clarifies the standard deduction question. I'm also trying to understand what kinds of expenses are typically deductible for mystery shoppers. I've organized my potential expenses into categories, but I'm not sure if I'm on the right track or if I'm missing anything.
Here are the categories and some examples of expenses I'm considering:
Technology:
Computer/Laptop
Smartphone
Internet Access
Software (tax preparation, mystery shopping apps, cloud storage)
VPN Service
Transportation:
Mileage (using the standard mileage rate)
Vehicle Expenses (if using actual expenses instead of mileage rate)
Ride-Sharing
Home Office:
Portion of rent or mortgage interest
Utilities
Home insurance
Depreciation of home office furniture
Other Expenses:
Supplies (pens, paper, notebooks)
Continuing Education (courses, workshops)
Tax Preparation Fees
Potentially Deductible (with Careful Documentation):
Clothing (if required for assignments and not suitable for everyday wear)
Meals (if traveling overnight or for business meetings)
Could you please provide some guidance on these points:
Are any of these expense categories typically not allowed as deductions for mystery shoppers?
Are there any special rules or limitations I should be aware of within each category?
Are there any other common deduction categories or specific expenses for mystery shoppers that I might have overlooked?
What kind of documentation do I need to keep to support these deductions in case of an audit?
I want to make sure I'm claiming legitimate deductions and following IRS guidelines. Any advice you can offer would be greatly appreciated!
