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Level 1
posted Apr 5, 2023 8:57:42 AM

Secret Shopping

I started secret shopping this year. I've spent almost $300 worth of products/services conducting these shops and recieved almost $600 as total payment. Do I have to report all $600 on taxes even though total profit was $300 ($600-$300)? Are the payments I've made tax deductible? Am I getting double taxed on what I spend mystery shopping?

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1 Best answer
Expert Alumni
Apr 5, 2023 9:45:36 AM

You should enter the total amount of income and then enter the applicable expenses that you incurred.

 

To do this in TurboTax Online you can follow these steps:

  1. Open or continue your return in TurboTax
  2. Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link at the top of the search results
  3. Answer Yes on the Did you have any self-employment income or expenses? screen
    • If you land on the Your 2022 self-employed work summary page, select Review next to the work you're adding income for
  4. Answer the questions on the following screens until you arrive at Let's enter the income for your work
  5. Scroll down to the Income section and click Add income for this work
  6. Choose Other self-employed income and Continue
  7. TurboTax will then ask you to enter your expenses

See What self-employed expenses can I deduct? to be sure you track all your applicable expenses.

3 Replies
Expert Alumni
Apr 5, 2023 9:14:34 AM

Your income from secret shopping is considered self-employment income and if you are self-employed and earned more than $400 (Gross – before you deduct your expenses) last year, you must report the income on a Schedule C. The good news is that you can deduct ordinary and necessary expenses for that business that you incur. 

 

Please review the TurboTax article Reporting Self-Employment Business Income and Deductions.

Level 1
Apr 5, 2023 9:33:13 AM

Thank you for your quick response Sharon!

 

Just to clarify, I only need to report the gross income/the income above what I already paid?

Expert Alumni
Apr 5, 2023 9:45:36 AM

You should enter the total amount of income and then enter the applicable expenses that you incurred.

 

To do this in TurboTax Online you can follow these steps:

  1. Open or continue your return in TurboTax
  2. Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link at the top of the search results
  3. Answer Yes on the Did you have any self-employment income or expenses? screen
    • If you land on the Your 2022 self-employed work summary page, select Review next to the work you're adding income for
  4. Answer the questions on the following screens until you arrive at Let's enter the income for your work
  5. Scroll down to the Income section and click Add income for this work
  6. Choose Other self-employed income and Continue
  7. TurboTax will then ask you to enter your expenses

See What self-employed expenses can I deduct? to be sure you track all your applicable expenses.