Become A Secret Shopper

Tax Deductions for Secret Shopper Education

admin — Sat, 06 Mar 2010 02:47:04 +0000

As in any business, you can claim education tax deductions for improving your business knowledge and skills. As you train yourself to improve and be an excellent mystery shopper, you will want to read books that will help to increase your abilities in the secret shopping industry.

Books are available that give you tips on what to observe, how to report your findings, and/or which companies will provide you with shopping assignments. This valuable information can give you an edge over others who may be looking for the same types of assignments as you are. And they can give you direction as you try to sort through the large number of companies that offer this kind of work.

If you are making money as a secret shopper, you will likely fill out a Schedule C when you file your income taxes. This form enables you to enter your earnings, minus your expenses. One business expense that you may have overlooked is expenses for educating yourself to become a better mystery shopper and to find more secret shopper jobs.

By keeping accurate records and receipts, you can claime the books and ebooks you purchase for self education in your business.. You must actually do secret shopping as a business, not just read about it, in order to claim the cost of the books as tax deductions. So start signing up for some mystery shopping jobs,and you can claim those books and supplies related to your business as an independent mystery shopper contractor.

If you are using the computer and the internet to study information on websites like this, you may also be able to claim part of the expense of your computer and internet service. The key is to be doing mystery shopping as a business, not as a hobby. Keeping accurate records of the amount of time you use your computer and internet for educating yourself to improve your business skills is required. Also count the time that you use your computer and internet for finding and signing up for shopper jobs and for filling out the required online evaluations once your shopping outing is complete. Use a log book to record the time you spend and then figure what percentage of your time on the internet and on your computer is devoted to your secret shopping business.

This is not professional tax advice. Always check with your tax preparer or accountant to be sure which expenses you may deduct. Also consult the book below to discover other tax deductions you can claim as you work at your business of being a mystery shopper.

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Tax Deductions for Secret Shopping

admin — Wed, 10 Feb 2010 23:49:40 +0000

As a mystery shopper, you are a self-employed independent contractor. You may work for as many mystery shopping provider companies as you wish. Since you are an independent contractor, you may be able to take tax deductions for secret shopping. This will be possible if you treat your shopping as a business and not just a hobby. This involves doing it regularly and keeping good records for tax purposes.

You will need to record when and where you do your mystery shopping and what your income and expenses are. You will need to save receipts and copies of reports you fill out and correspondence with the companies which give you shopping assignments. That way, if you are ever audited, you will have the proof you need to substantiate that your tax deductions were business related.

The information presented here is simply to stimulate ideas that you can use as you plan what you can deduct. It is not official tax advice. Obviously you should consult a tax adviser or accountant before taking deductions. You may also consult J.K. Lasser’s 1001 Deductions and Tax Breaks 2010: Your Complete Guide to Everything Deductible.

Travel Tax Deductions for Your Secret Shopping Business

Many mystery shoppers are not aware of all the travel tax deductions that they can take. By keeping accurate records, you may claim business deductions that are related to your secret shopping assignments. It is important to keep an auto log book (or an electronic device to record and keep your auto logs) in your car to record your mileage for both personal and business travel. That way, when you do your taxes, you will have the information you need to claim mileage. Anytime you drive to evaluate a business, you should record your starting and ending mileage reading on your odometer.

If you incur expenses for parking or tolls while you are out on business, keep those receipts. It is good to also save your gas receipts as a back-up, even it you are claiming a mileage deduction instead of an actual expense deduction.

If you are out on the road for several hours doing secret shopping assignments, you may also be able to deduct the cost of a meal in a restaurant. Of course, it would be even better to get a free meal by doing a restaurant mystery shop!

With smart planning ahead, you can combine trips for running errands with your mystery shopping trips, taking advantage of your opportunity to claim business mileage. For instance, if you need to take clothing to be dry cleaned, choose a dry cleaning business that is near one of your secret shopping assignments. Drop off your clothing while you are there. This will save you time and give you the opportunity to use tax deductible mileage for something you would have had to do anyhow.

If you land an assignment at a movie theater. Take a friend along, enjoy the movie, and take a mileage deduction in the process. What a great way to turn a trip out for entertainment into a travel tax deduction!

Tax Deductions for Supplies and Services

You can claim tax deductions for supplies and services that you use in your business. Keep receipts for pens, notebooks, ink cartridges, auto record log books, day planners, calendars, and anything else that is used for business. Also record how and when you used them.

You may want to set up a business bank account so that it will be easier to keep track of your business income and expenses. If you are charged bank fees or fees for your checks, these should be deductible also.

You will need to use your computer to log onto company websites to sign up for your mystery shopping job assignments. Also you’ll be using email and filling out online forms to report your findings as you do your mystery shopping. Consider what percentage of the time that you spend on your computer and on the internet that is related to your mystery shopping business. Keep records to substantiate this so that you can deduct a portion of the cost of your computer and a portion of your monthly internet service fees.

You may also need to use your phone or cell phone to call the businesses that you will be investigating. Some mystery shopping assignments include a report on how the business handled your call. Also you may need to call the companies that assign you to secret shopping jobs. If you keep track of the amount of time you use your phones for business versus personal use, you may figure a percentage and claim that percentage of your monthly phone bills.

Think about what supplies and services you use in your business? Don’t miss tax deductions for supplies and services that you use.

You may need software for keeping track of your expenses and income. Also you may need tax software. If you are using these to keep track of your business income and to do your taxes, which include your business income and deductions, then the cost of such software is deductible.

Tax Deductible Vacations?

Once you establish yourself as a reliable mystery shopper, the companies you work for should be willing to give you frequent assignments. When planning a vacation, you can log onto their websites to find out what assignments are available in the areas where you will be traveling.

If you plan your trip so that you can spend a few hours each day doing mystery shops, you could claim some of your vacation expenses as a business expenses. This is especially helpful when you can claim mileage as you travel from where you live to various assignments in different locations. Some of your meals may be deductible also.

Mystery Shopper Terms and Conditions

admin — Wed, 10 Feb 2010 23:22:58 +0000

To succeed in the secret shopping business you must know the mystery shopper terms and conditions for each company you work for. These will vary from company to company.

For instance, several companies will require you to take an online test as well as fill out an application. Remember, for a legitimate mystery shopping providercompany, you do NOT have to pay a fee to apply. Some companies require reading and taking a test for each specific business you will shop. For instance, one company requires you to read an online Radio Shack manual for assignments to Radio Shack and a McDonalds manual for assignments to McDonalds. After reading the manuals, you take a test to prove that you understand the requirements of the secret shopping assignments to those businesses.

Beyond testing, mystery shopper terms and conditions require you to be very observant and to be able to take in and remember a lot of information at once. For instance, you may have to remember the exact times or exact number of minutes and seconds from the time you stand in a line until a cashier waits on you. You may need to get and remember the cashier’s name and what she said to you. You also may have to observe whether the shelves are tidy, whether there is litter on the floor, whether the restrooms are clean, and be ready to report the name of anyone who assisted you and how helpful he was.

Once you have done your secret shopper visit, you need to make thorough notes and fill out an online report giving complete details for each question on the report. A good company will give you guidelines and these questions before you do the shop so that you know what is required. You will also be required to clearly write the answers with good spelling and good grammar.

Be sure to look at the online form you will fill out before going out to do your secret shopping assignment. Typically the guidelines for the assignment do not thoroughly prepare you for everything you must observe. By looking at the actual form, you will know exactly what you will be asked.

Other terms and conditions normally require you to fax or scan and attach a copy of your receipts.

If you fail to completely meet the requirements, you may be denied payment and reimbursement for the mystery shopping assignment. If an answer you give is not complete and explained well, your payment may be held up until you submit further information.

You need to be able to do the mystery shop without giving any indication to the employees that you are on a secret shopping assignment. You may not carry with you your papers and/or fill them out while at the business.

Your report and comments will be sent to the business that hired the mystery shopping provider company, and often it will also be sent directly to the employees at the establishment you visited. If those employees indicate that they could tell you were doing a mystery shop, you will not likely be given that assignment again. So you must stay (as the old saying goes) cool, calm, and collected!

In the beginning you will likely need to accept shopping assignments that don’t pay well. The companies you work for will be evaluating whether you do the assignments promptly and on time and whether your shopping assignments and reports are done thoroughly and correctly. If you do well, you should receive offers for more and better paying assignments.

Extra Income as a Mystery Shopper

admin — Sun, 07 Feb 2010 00:18:09 +0000

Earning extra income as a mystery shopper is easy. However it is important to understand that for most people, secret shopping simply provides a nice supplement to income, not a full-time one.

Who makes a good part-time mystery shopper?

College students
Stay-at-home moms
Retirees
People who have flexible schedules
People who like to shop!

You may find that being a mystery shopper is the perfect way to bring in extra spending money. And you can cut your expenses as you are reimbursed for goods and services that you would purchase anyhow. For instance, you could pick up a little extra spending money for taking a half hour to do a secret shop at a department store. (Perhaps $12) Depending on the company that assigns you, you might even get reimbursed for the cost of the item you bought as you did the shop.

Or how about getting paid to eat at a restaurant or for going to a movie? Recently we did a secret shop and had our oil changed for free. Also I had a hair cut and was reimbursed for the cost. I have also received a free eye exam plus part of the cost of buying new glasses. And I enjoyed a free candy bar and soda from doing a convenience store mystery shop.

No, you won’t get rich doing this. But the perks are nice! You can sign up with several secret shopper companies and pick and choose available assignments which fit your schedule.

Can Mystery Shopping Provide a Full Time Income?

Yes, some people register with enough companies and accept enough mystery shopper assignments to work full time as a secret shopper. It takes time to build your mystery shopping business to this level. A lot depends upon whether you live in an area where lots of shopper jobs are available or not. Obviously there are more jobs in urban areas than in rural ones.

As you fulfill the requirements of various assignments and build a reputation as a reliable shopper who will take available assignments, you may receive enough shopping jobs to keep you busy every day.

You must build your business to reach this goal. Companies that provide secret shopping assignments will test you by giving you small assignments. If you do a prompt and thorough job for them, they may increase the number and quality of assignments that are offered to you.

Looking for another source of extra income? Read the article, “Become A Virtual Assistant.”

How To Begin As A Secret Shopper

admin — Sat, 06 Feb 2010 03:53:04 +0000

One of the first questions asked by potential secret shoppers is how to begin. It’s pretty simple.

1. Read through websites of mystery shopper job provider companies to find those who offer the type of jobs you want in your area. If you don’t know how to find these websites, take out a membership in a directory of mystery shopping provider companies.

2. Register as a secret shopper on those websites. In some cases you may need to take a test, but most of the mystery shopper companies do not require this. The more companies you join, the more shopper jobs will be available to you.

3. Sign up to get emails of job openings from the companies that you register with.

4. View the “job boards” of the websites of those companies.

5. Sign up for the jobs you want to accept.

6. Wait for confirmation that you have been assigned to the jobs.

7. Study the requirements for the job so that when you do the shopping job you will know what to observe. Make sure you thoroughly understand every aspect of the assignment. You won’t get paid if you don’t give all the required information.

8. Do the shopping job within the time frame of the assignment.

9. Log onto the website of the assigning company to fill out the online report about your shopping experience. Be thorough and clear in your descriptions of your shopping job experience. You will probably have to scan and upload a receipt for your purchase or fax a copy to the company.

10. Wait for your pay! (And while you’re waiting, do some more shopper jobs!)