Jens Avon Updates!

A resouceful blog for my unit!

Income Taxes

on January 5, 2012

It’s that time of year again. If you sold Avon in 2011, you will need to file self employment taxes to claim your income made thru selling Avon. Unless you were receiving actual checks (downline earnings/bonuses) from Avon, you probably won’t receive a Form 1099 telling you how much you earned. It’s very important to keep track of all of your expenses & income that you make so you have accurate tax records. Below, I have included some tips on helping you file income taxes for your Avon business. Please keep in mind, I am NOT a CPA, therefore, please consult with your accountant before doing anything, I have been self employed for several years so I just know a few helpful tips to help make this time of year alittle less stressful.

Tips:

1. Keep a SEPERATE checking account for your Avon business. Do not combine your personal checking accounts with your business account. This helps keep expenses & income records seperate if there is ever a question.

2. Keep good records. Keep all receipts & write everything down. For your convenience, Avon offers a Tax Flyer you can download & print. Go to My Account tab & click on the 2011 Tax Flyer to download it. Here you can track many of your Avon related expenses & income.  You can usually deduct mileage (delivering products), sales tools, brochures, customer gifts, demo products, office supplies, advertising & donations from your income. Personal purchases do not qualify as deductions.  This also goes for keeping everything in a safe location, not a shoe box lol. Get a filing cabinet specific for tax records. Also keep copies of customer invoices/receipts & Avon invoices that are included with your shipments. This will help prove your earnings each campaign.

3. Get a good accountant. A good accountant will know all the tax laws that apply to this type of business as well as know all the deductions you’re legally able to take. They will also keep a copy of your records, just incase, & back you up incase of an audit.

4. Track income & expenses as they happen throughout the year. Trying to remember what expense happened at what time will be very difficult come tax time. To make sure that you have every expense & income tracked, record it when it happens so you’re not overwhelmed or forget something important.

5. You may also be able to deduct a portion, if not all, of your cell phone bill & internet bill (if you use these things for your business) from your income. To make sure, ask your accountant. Take advantage of all the deductions that you can.

Have any good income tax tips for your Avon business? Comment below!

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