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Since you describe this activity as being an "Independent Contractor", you should report the income as sell employment.
You do not need a 1099.
In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income
Scroll down to:
- Business Items
- Business Income & Expenses (Sch C)
You will have to pay Self employment tax (about 14.1%) in addition to income tax. "Self employment tax" (SET) is how you pay social security & Medicare tax, on earned income when none was withheld.
If this was a one time gig, you may be able to avoid SET by reporting it as "other income". See https://ttlc.intuit.com/community/taxes/discussion/re-1099-nec/01/2217598#M797656
It was not a one time gig, it was mystery shopping gigs on and off throughout the year based on the accepted assignment from Market Force, usually requiring a purchase made.
Do I report only what I ‘actually’ got paid by them? Or do I report the amount that would include what I got back for purchase-reimbursements which is higher?
Include the purchase reimbursements, since you got to keep the merchandise. Technically, you include the fair market value (FMV) of the merchandise, but that is usually the purchase price.
The things I purchased and evaluated was the food. The company gave me back the cost of the food, so I report this amount alongside the ‘actual’ pay?
Q. So I report this amount alongside the ‘actual’ pay?
A. Simple answer: Yes, you report the reimbursement as income.
Some would argue you don't need to report it since it was reimbursed expenses. The proper way is to report all income and then deduct your business expenses. The next question is: is the purchase of these items a business expense. If you got no personal benefit from the items, then it's a deductible business expense. I realize for food that's a wishy washy question.
So, using a simplified example: you took a taste and threw the rest away; it's a business expense. You fully consumed the item; it's not a business expense.
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