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flyingangeldiane
Returning Member

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

 
12 Replies
Critter-3
Level 15

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

There is no such thing as a "MAX" ... on the sch C you will report ALL your income & expenses.

 

If you are new to being self employed, are not incorporated or in a partnership  and  are acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

          

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed

          
Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits. 
 
- 2. You expect your withholding and credits to be less than the smaller of: 
    90% of the tax to be shown on your current year’s tax return, or 
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

rjs
Level 15
Level 15

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

The maximum amount you can claim for business expenses is the amount that you actually spent. You have to have records of your business expenses, and receipts or other proof of payment.

 

flyingangeldiane
Returning Member

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

someone said you can only claim up to $600

 

Critter-3
Level 15

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

WRONG. 

rjs
Level 15
Level 15

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?


@flyingangeldiane wrote:

someone said you can only claim up to $600


"Someone" was wrong. Who is "someone"?

 

Critter-3
Level 15

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

"Someone" is the cousin of "somebody" who is married to "my friend" and is a brother to "I heard it said" ... a totally unreliable family for income tax information.  😉 

flyingangeldiane
Returning Member

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

Maybe I should have elaborated on this? Someone said that we could only claim up to $600 of our expenses. They don't take taxes out of our checks, so I want to be sure I claim everything I have spent getting started. I don't think I will need to pay quarterly taxes on what I make or get a tax id or anything like that, lol. I don't know of any one on my team that has had to do that and I am sure some of them make way more that I do for now. At this point, I am just looking up what all I can claim such as gas, phone, a portion of my car, etc? Hope that helps a little? Thank you for all the info though. 

Critter-3
Level 15

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

OK ... start by reading the IRS publications or seeking reliable tax guidance ... 

 

If you are new to being self employed, are not incorporated or in a partnership  and  are acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

          

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed

          
Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits. 
 
- 2. You expect your withholding and credits to be less than the smaller of: 
    90% of the tax to be shown on your current year’s tax return, or 
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

flyingangeldiane
Returning Member

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

Someone is one of the other reps that just started last year. I didn't think it was accurate, so I am asking now. I am sure when I do my taxes, it will tell me if there is a max I can claim. 

flyingangeldiane
Returning Member

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

oh my.... looks like I will be quitting doing this if I have to do all that. Not sure how anyone does this if that is everything you have to do for a little side business on the weekends. That's crazy! 

VolvoGirl
Level 15

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

The $600 might refer to the amount someone has to give you a 1099NEC for income.   If someone pays you $600 or more total for the year they have to give you a 1099NEC.  

You need to report all your income even if you don't get a 1099NEC.  You need to keep your own good records.  

flyingangeldiane
Returning Member

What is the maximum amount you can claim for write offs as an independent sales rep for something like tupperware, avon, etc?

yes, I believe we get a 1099. 

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