I was a Mary Kay consultant for about 6 or so, but I did not have enough to get a tax return.
Mary Kay Incorporated gives its consultants the ability to run their own business while juggling family and other responsibilities.You have to report your income from sales, commissions and the fair market value of prizes you win for meeting sales quota as a direct seller.If you earn less than $600 in a tax year, Mary Kay doesn't have to report it to the IRS, as a business owner.
Mary Kay Incorporated gives its consultants the ability to run their own business while juggling family and other responsibilities.You have to report your income from sales, commissions and the fair market value of prizes you win for meeting sales quota as a direct seller.If you earn less than $600 in a tax year, Mary Kay doesn't have to report it to the IRS, as a business owner.
Any payments, gifts or gratuities you received throughout the year should be included in your income information.Box 9 is on your tax return.Mary Kay will inform the IRS that you ordered at least $5,000 worth of products to sell as a direct seller if the box is checked.Mary Kay doesn't have to include the amount of your orders in Box 7 as non-employee compensation.The company must send you a letter stating the value of any items you received for future sales that you did not pay for if it does not include the amount with your compensation.
If you have Mary Kay product sales, you should return them to the company.If you have an inventory of Mary Kay products, you should conduct an audit.
Schedule C can be downloaded from the IRS.If you maintain an inventory, you can determine the cost of goods sold.Take the value of your inventory and subtract it from your purchases.
Take your gross sales, the value of any returns and allowances, and your cost of goods sold into account.You can enter the total on Line 3 if youSubtract your returns from your gross sales.Your gross profit can be entered on Line 5 if youSubtract your cost of goods from Line 3.You can enter the value of prizes or awards earned by Mary Kay.Your reportable gross income is determined by the total lines 5 and 6.
If applicable, calculate your expenses and subtract them from your gross income to determine your net profit.You can enter your profit on Line 12 of your form.