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Hi I'm Tracy Lee your Chicago Wrap Girl with It Works Global. I'm here just to give you
a few tax tips for the 2013 tax year concerning your It Works Global business.
I am a tax professional by [trade], I've been doing taxes for about six years now so I'm
a little bit qualified to do this video. However, please consult with your tax professional
or your accountant, or the IRS when preparing your own taxes. You can go to www.IRS.gov
Each state, law and regulation is different, so you definitely want to consult with a professional
or the IRS in your statement. One thing you're going to expect from It Works
Global is you will receive what is called a Form 1099 Miscellaneous only, and only if
you have earned $600 or more. If you have earned $599.99 in 2013 from It Works, you
will not receive a Form 1099. So keep that in mind, you guys. I did speak with Corporate
Office today. They stated that they will be mailing these forms out by the 23rd and 24th
of this month so you'll probably have it by the end of the month But if you don't, legally
they have until January 31st to send out these forms. So give it about a week or two in February.
If you don't receive it, then give them a call or put in a support ticket, all right?
So that's that. On your Form 1099 Miscellaneous, in Box number
7 typically would be the income that you've earned. We are considered independent distributors
with It Works but IRS listed us as independent contractors. So there will be no taxes taken
out as you all have seen whatever you've earned in whatever month it was, if you've earned
a thousand dollars in the month of December, or for the whole year, your 1099 Miscellaneous
Form Box 7 is going to state $1000. So keep that in mind, you guys.
When you do your taxes there's going to be a question asked especially to those of you
who do your own taxes and you use a program like TurboTax or something. It's more like
an interview cell and they're going to ask you, if you received any self-employment income.
You're going to say "yes", okay. You're not going to file your taxes as a sole proprietor
or schedule, or a corporation or S-corp or C-corp, or LLC if you have not filed these
types of statuses with your State. If you files these statuses with your State then
you're going to file a totally different tax return that I'm not going to cover in this
video. This is just for those of you who are filing as personal, as individuals. So, your
individual tax forms in [40], okay. There's going to be a question, "Have you
received any income from self-employment?" You're going to say "yes". It's going to say,
"Have received the form 1099 Miscellaneous?" You're going to say "yes". What number is
in Box No.7? You're going to put that in your box, you're going to put that number in Box
No. 7. Then it's going to ask you to select the type
of business that you've earned, or that you have earned money in. So the businesses are
typically in code. So here are two codes you all that I would consider using and that I'm
going to use with my own taxes this year. So the one code is 812190 which is "Other
Personal Care Services, including diet and weight-reducing centers. The other code is
812990 which is "All Other Personal Services" You only need to choose one. It's no big deal,
but you do want to have a code because this allows the IRS to gather statistics on what
everyone is doing in the realm of self-employment. So again those code numbers are 812190 or
812990. So that's important. That's going to be like the very first part of your interview
or when you're doing your taxes; you want to have those forms in hand.
Some of the expenses guys that you can write-off. So they're going to ask you, "What expenses
did you have?" The first one is probably going to be advertisement. So expenses for advertisement
would include like this banner like I have behind me. It would include your blitz cards,
your business cards, and your car magnets. Advertising will also include your websites.
So the $20 monthly fee that we pay for our e-suite, which is really our website, you
want to include that in your advertisement. Any get ads in Facebook or Google. Those are
all fees that go under your advertising, okay? Another thing that you can write-off or less
tax deductibles is your car expenses. So car expenses include one or the other. For example,
car expenses include either your mileage. So mileage is like for the ram of any expos
you've been to, you might want to document the mileage of it. You have that mileage documented,
you want to use that. Any wrap parties that you've done. You want
to calculate the mileage that you've used or that you have driven from your house to
the house or location that you've done the wrap parties. If you have not documented your
mileage, in like what we call a log, then you just simply go to Map Quest or Google
Maps, put in the address, your address and the address to the location that you went
to do these events, and print those out. Because you get audited randomly by the IRS, you want
to be able to say "Hey, I did these wrap parties, I did these events. Here's the mileage."
So either use the mileage or you can do expenses which includes gas, any repairs to your car,
any tolls that you have to pay. You put those in and then the system most of the time will
choose what's best for you as far as deduction. But you definitely want to weigh your actions
with that. Another tax deduction is travel. Travel includes
any boot camps you went to last year. Any conferences that you went to, a hotel, any
rental cars that you used or that you rented when you were out of town. Those are all included
in your Travel expenses. Your airplane, your flight information; what you paid for flight.
Even if you've driven, okay? Let's say from Chicago to Florida, that's traveling, okay?
I want to write that off, I want to get back as much as I can when I have that deduction
in my tax returns. You also can write off meals; any meals that
you spent, any meals that you have eaten and paid for when you were traveling on the road.
Also if you are like myself, taking some distributors out when you're meeting, and if you've sorted
the bill or any loyal customers. You take them to lunch and you paid for it, those are
meals that you can write-off even if you are doing, just say in expo, or a wrap party and
you decided to buy meal that day. That is totally tax deductible.
Another thing that you want to be able to write-off is your cell phone. If you use your
cell phone for business, if you use it a hundred percent business, then you would put the total
amount for the year. If you only use it 50% of business like you might have you might
use it for personal, for your children or things like that, then you will be kind of
asked to make the percentage that you use for business. Also, any 800 numbers you want
to write that off that you might use. Your office expenses include paper, ink, computer
anything that you've printed out, things like that. If you run an office space which probably,
most people don't in this business. But if you do, that's all tax deductible.
Supplies. You want to write off your supplies. So supplies include party passes you've purchased,
brochures, catalogues, Saran Wrap, body wraps, your Green Chews, your Fat Fighters, basically
whatever you ordered in your [autoship]. Things that you need to constantly run your business
are considered supplies. So you want to calculate all that, you don't necessarily have to itemize
it, but you can when you're doing your taxes. But I would just add them all up, have them
itemized for your own record. But put that number in a lump sum when doing my taxes.
All of these information will go on what is called "Schedule C" which is a profit or loss
form for your business. All of these information you're going to put on Schedule C which most
softwares are so sophisticated now that it will automatically put all of these number
where they are supposed to go. So don't worry, don't try to search all, "Where's Schedule
C?" Don't worry. If you're doing your taxes on Turbo Tax or anything like that, and you've
answered the question, "Yes, I've done self-employment," businesses or income, it will automatically
transfer those over into Schedule C for you. What else? Finally, I have a home office here,
so any expenses for my home I can write off. For example, it goes by square foot. Let me
give you an example for that. If my home is 1000sq ft. and my home office is 100sq. ft.
that's 10% of my house that I'm using. So that means that I can write off 10% of my
taxes, 10% of my mortgage, 10% of my utilities, 10% of my garbage bills, 10% anything concerning
my home. I can write it off because I have a home office that I do business out off.
So hopefully you all these tax tips have helped you today. If you need more information, definitely,
like I said before, contact the IRS at www.IRS.gov. or give them a phone call. They are more than
likely and welcome to help you. There are some pretty nice people with the IRS, so don't
be afraid. Also, consult with your tax professional or your accountant as well. Go to my website
www.ChicagoWrapGirls.com. I'm going to blog about this so you have additional information
there as well what to expect for the 2013 tax season.
So you guys, happy tax filing, have a great day, and I'll see you on the next video.