It’s tax time! Yes, it is time to prepare your 2013 income tax. For many of you, this is your first time in a MLM or doing self employment of some sort. Let me give you a few tips that will help you to prepare for tax season 2013. Let me say this first, the first day you can electronically file your 2013 tax returns is Friday, January 31, 2014. So you have a couple of weeks to gather your information if you are reading this now.
It Works Global anticipates mailing out forms 1099 misc. January 23rd and 24th of 2014. If you have not earned $600 or more, you will not receive a form 1099 misc. from It Works Global. This does not necessarily negate you from filing any income you have earned doing your It Works Business. Your income will consist of monthly commissions you receive on the 15th of each month, party cash from wrap parties, and weekly bonuses. Consult with your tax professional or accountant for more information on that.
Now on to the good stuff. If you have not filed a business status with your state, for example, S Corp, C Corp, LLC, Sole Proprietor, etc., you are considered and Individual. This simply means that you will file a form 1040 as usual along with a form Schedule C. For those of you who prepare your own taxes, using an online tax software of some kind, you will be asked for a Business Code. The code that will work for the type of business we do with It Works Global is 812190 or 812990. Both of these codes fall under Personal Services which include diet and weight reducing centers.
Some typical things that are tax deductible as an It Works Global Independent Distributor include:
Advertising: Google Ads, Facebook Ads, Blitz cards, Car Magnets, Banner, Website, etc.
Car Expenses: Mileage (going to and from wrap party or expos) or Gas, Repairs, Oil changes, Tolls, Parking fees, etc. You can only choose one or the other to use a a deductible. However, most tax software is created to choose the best option for you.
Travel Expenses: Conferences, Bootcamps, Hotel, rental cars
Meals: Any food bought during travel, for entertainment or while working.
Utilities: Cell phone, internet, portions of your home expenses if this is where you conduct your business. These expenses include your utilities. To calculate the portion of expenses that can be used, you must know the total square footage of your home and the total square footage of the space that you use consistently to operate your It Works business. For example, if my home is 1000 sqft and my home office is 10×10 which is 100sqft, then I am only able to deduct 10% of my utilities for business purposes. Don’t be confused, most tax software will do the calculations for you.
Supplies: Party Pads, brochures, catalogs, saran wrap, scissors, ultimate body applicators, facials, greens, fat fighters,profit, etc. Your deductible supplies will consist of anything that you uses to keep your business functioning on a regular basis.
I hope this helps everyone. Remember to consult with your tax professional, accountant, or with the IRS.