For Direct sales income, do I only include the actual commision that I received from the company?

[nissangirl418]

I am a consultant for Rodan and Fields.  I started this journey/business in July 2018. For my taxes, do I only report the actual commission that I received from Rodan and Fields?  I don't have any inventory, orders are direct shipped once a customer orders from my website.  I have only received $34 but spent more for my actual start up business kit.

[Ashby]

Yes, since it's direct ship, there's no need to report product costs. You can report commissions and then deduct your other expenses related to the business.

[Jracaa]

Same question - Started selling Norwex this year, which is a direct ship.  Customers order from the website, pay Norwex directly, then Norwex sends me a commission based on those orders.  Unsure how to report all that.  Do I have to report all sales and then deduct that same amount as a business expense?

[MarilynG1]

@Jracaa Yes, you would report your commissions as Business Income.  No, don't deduct that same amount as a Business Expense.

You may have Business Expenses such as cell phone, website, vehicle, etc. that you can deduct.

Once you enter info about your Business, TurboTax presents you with various types Business Expenses you may deduct.  Keep good records of your income/expenses with your tax return.

Type 'schedule c' in the Search area, then click on 'Jump to schedule c' to get to the Business area. 

Click this link for more detailed info on Reporting Business Income and Expenses.