How does direct selling affect tax refunds?

[rt20push]

I can't seem to find this answer on my own... And I am afraid my team leader may not want totell me but my husband is concerned? I am brand new to direct selling and I love it but I need to be prepared for next year, Thank you for your help!

[KristinOhio]

Well, if you keep good records -- having a 1099 from your direct sales company can be a lifesaver for your family's taxes!!

First of all, keep track of everything you pay for. Mileage (even to run to the post office to pick up stamps), product, food you pay for your Open House, etc. ANYTHING and EVERYTHING!!!

Next, figure out how much you use your online service, cell phone, etc. for business. You can deduct that percentage from your bills and write it off on taxes.

If you're rolling in the cash (more than $1,000) per month, then set aside approximately 35% of your paycheck for taxes. That's a generous amount, but at least you'll be safe.

Otherwise, don't worry. I've heard that some people open small businesses just for the tax write-offs. My business has definately helped our bottom line the past two years.

Good luck and enjoy your business!!!!

[rt20push]

Thank you so much for the advice! You saved me a weekend of arguing !

[KristinOhio]

Lol

No problem. Believe me -- it can actually benefit your return. Just keep good records (especially mileage) and keep all receipts.

Have a great weekend!!