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Taxes

Posted by on May. 1, 2010 at 1:15 PM
  • 8 Replies
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Frequently Asked Questions about Avon and Taxes:

Q:  Should I file an income tax return?
A:   Since you are self-employed, you must file a federal tax return and pay self-employment tax if you had net earnings (that's after your business expenses have been deducted) of $400 or more from self-employment during the year.  You may also have to file a return for other reasons.

***Note ~ Each individual's circumstances will vary, and you may want to consult your local IRS office or a tax expert.

Q:  How can I figure out my earnings from my Avon business?
A:   Your earnings are the amount you sell to your Customers, minus the amount you paid Avon for the merchandise, minus all your business deductions.  You must also include the value of prizes and awards you receive from Avon.

Q:  What information does Avon provide for tax-reporting purposes?
A:  For many Representatives, Avon is not required to provide any tax information.  However, for those Representatives who purchase $5,000 or more of merchandise for resale in a single year, Avon is required to supply your name, address and Social Security Number to the IRS.

In fact, Avon informs the IRS only that you have $5,000 or more in purchase from Avon and does not supply a specific dollar amount unless requested by the IRS.

Avon also does not report your earnings, as only you can properly determine them.  The amount of merchandise purchased for resale does not include demostration products, sales tools or other items shown on your invoice as "No-Discount Items".  Returned merchandise will not be included in this amount.

In addition, when prizes, awards, recommendations earnings or any other bonuses you receive from Avon total $600 or more annually, Avon like any direct-selling company must by law file an information return (Form 1099) with the IRS and send a copy to you for your records.

***Note ~ Keep in mind that Avon purchases of $5,000 for resale probably mean Customer sales of $8,500, depending on your earnings level.

Because you are an independent contractor, Avon does not withhold taxes from your earnings, and tax reporting is solely your responsibility.

***Remember ~ Keeping good records is the best thing you can do to ensure that you receive the benefit of every tax deduction you have coming to you.

 

 

 

by on May. 1, 2010 at 1:15 PM
Replies (1-8):
Brendabs
by Group Owner on May. 1, 2010 at 5:26 PM

It should be pretty easy for you to find out what your expenses have been because they are listed on your Account Statement ~ you get those with your orders.

Just remember ~ Keeping good records is the best thing you can do to ensure that you receive the benefit of every tax deduction you have coming to you and if you have any questions you should speak with a Tax Professional because they are the only ones who can tell you what you should and shouldn't do when it comes to your income taxes.

Brenda

 

upcgirl
by Member on May. 1, 2010 at 8:23 PM

ok I sent what you wrote about taxes to my Rep here and this was her reply so sounds like I probably have a few yrs left before I have to worry about filing taxes..


hi debbie:

this is correct!!!

you are in charge of your own avon account. when you do sell in access of  amount required the irs will send you a 1099. i worked for avon for 3 years or more before i got one. then you can take a loss up to 3 years. i wouldn't even think of it at this point. if you want you can buy your brochures from avon. because you can claim them. when you need to. i'm doing you a favor by delivering them and selling them to you at cost. i don't have to do this i do it to help my downline save $$$ . any more questions i'll be happy to answer. have a great weekend.


Brendabs
by Group Owner on May. 1, 2010 at 9:12 PM

Like I said before ~ the best person to get advice from for your income taxes would be a tax professional, but whatever you decide to do is your business.  With that said ~ I still think it's a good idea to keep track of what your expenses are because how else will you know how much you made with your Avon Business?

Just to clear up the statement from the Lady you signed up with ~ the IRS is not the one who will send you the 1099 form ~ that form will come from Avon.

Brenda

upcgirl
by Member on May. 1, 2010 at 9:38 PM

I'm still trying to figure out how much I have made because on invoice estimated earnings and how much you actually made are way off,I notice that from my last campaign.I do know how much I made this last time but my first 2 not so sure and now I think I will know from on so hopefully I will get better. I dont buy my Avon brochures from Avon when I place order,I buy them from my Rep because she buys ALOT of them and sells them alot cheaper to her downline.I get 10 for $1.40 which makes it ALOT more Affordable when we really dont make much selling Avon.So I know buying them from her,I cant claim on taxes anyways.


I think alot of us are still confused on things so I'm sure I'm not the only one who has no clue on how much there spending on business supplys.


Brendabs
by Group Owner on May. 1, 2010 at 11:44 PM

 I think it's great that you have someone you can buy Avon Books at a discount from ~ the district that I'm in now is the 1st district that I've been in that doesn't have anyone who buys a lot of books to sell at a discount to other Reps.  I've been thinking perhaps I should start buying in bulk and offering the discount to the other Reps in my area.

 

upcgirl
by Member on May. 1, 2010 at 11:57 PM

It is a blessing because honestly if your paying $5.75 for just 10, it dont seem worth it,we really dont get paid much working for Avon, I feel books should be free.


BettyFreakStyle
by on May. 3, 2010 at 12:08 AM

 I have been holding all receipts when I get gas, buy office supplies and all my personal and customer receipts for this purpose

pamb1
by Member on May. 16, 2010 at 7:23 AM

Instead of gas receipts, you should be keeping a mileage log (keep a pad or something in your car) written with the beginning and ending mileage of each Avon related trip, and a note of the purpose of the trip, ie.  delivery, putting out brochures etc.

 

It's easy to sell because it's Avon! 

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