Filing taxes as a mystery shopper

[divya]

Hello Scers,

Its tax time and this is my first time filing taxes for mystery shopping. This might be useful for the new mystery shoppers too. Some advice and help is really appreciated.

Is it necessary to file the income from mystery shopping as 90% of it is expenses?

What expenses can be deducted as part of mystery shopping?

Are the mystery shopping receipts enough proof for the expenses?

Any tips and advice on how you guys do it will be very helpful. THanks for your help!

[ellis123]

A mystery shopping company will not send you a T4A until you make $500 from them. Therefore to do your taxes your paystubbs(if you have some) will be enough but you should deduct expenses like gas, travel expenses and any other expense that you incurred to make the income( during the shop) Check CRA or a tax professional for proper tax procedures.

[marmaduke]

I don't claim my mystery shopping income on my income taxes because there is none. By the time you include mileage (53¢ km) and printing (5 - 10¢ a sheet) I don't have an income but a loss.
I consider it a hobby.
I do however keep records so that I can prove this.

[RMurp007]

I made over $6000 dollars in fee alone last year and reported this on my taxes. I do not report the reimbursements. I deduct the mileage, faxes, stamps, Internet, & office supplies such as paper, ink, personal recorder, and digital camera.

[paigeallan]

I am figuring this out also. SQM (mystery shopping company) has some tax information on their website.

[t's_mama]

I am figuring this out also. SQM (mystery shopping company) has some tax information on their website.

what is the link for the tax info? I don't see it on their website.

[paigeallan]

Click on Shopper Information and a list appears. One of the items is taxes. It may just be a link to Canada Revenue. I haven't got to my taxes yet.

[LatoniaBarry]

I don't claim my mystery shopping income on my income taxes because there is none.

[paigeallan]

I do have income, so I feel I have to declare it. I pretty much do what RMurp007 said. I want to improve my record keeping so I'm a little more clear on my expenses and how to use them as a deduction.

[DianneS]

Even if your income and expenses end up netting out to zero, you are legally required to report same on your tax return. Whether you are T4'd or not, one must report any income they make. As a tax preparer, I would advise that if you receive any income as a mystery shopper you should be sure to report it as well as your expenses. You can't say, "well, I didn't actually make anything from it", you actually need to show that your net income from mystery shopping was $0 on your tax return by listing your income and expenses. Otherwise, you are in a position where you have undeclared income...not a good spot to be with CRA.

[paigeallan]

Thanks for that info DianneS. I do report it, and I do have an accountant do my taxes. She told me to keep better records of my expenses.
Do you know if the reimbursements I get are taxable or not. Some reimbursements are useful, such as gas. But many reimbursements are not. If I pay taxes on the reimbursement of a hotel stay that I didn't need, I would be better off not staying at the hotel! I do the hotel stay for the $15.00 fee which I am perfectly willing to pay taxes on. But if I have to pay taxes on the room rate, I would just stay at my daughter's house down the road.

So I guess my question is ... Is that a reimbursable expense in the eyes of Revenue Canada or is it income?

I will ask my accountant, but she was very surprised to hear there was such a thing as mystery shopping and I'm not sure if she'll know.

I phoned Revenue Canada once to ask and that person didn't know the answer. Her guess was that it would be taxable.