I've researched this same issue. I attended the tax and business class at convention and they didn't address it and there wasn't time to ask. I finally found the info I pasted below.
425120 Wholesale Trade Agents and Brokers
This industry comprises wholesale trade agents and brokers acting on behalf of buyers or sellers in the wholesale distribution of goods. Agents and brokers do not take title to the goods being sold but rather receive a commission or fee for their service. Agents and brokers for all durable and nondurable goods are included in this industry.
Illustrative Examples:
This industry comprises wholesale trade agents and brokers acting on behalf of buyers or sellers in the wholesale distribution of goods. Agents and brokers do not take title to the goods being sold but rather receive a commission or fee for their service. Agents and brokers for all durable and nondurable goods are included in this industry.
Illustrative Examples:
- Independent sales representatives
- Manufacturers' sales representatives
For distributors, the correct code must be selected from the sub-sectors of:
- 423 Merchant Wholesalers, Durable Goods
or - 424 Merchant Wholesalers, Non-Durable Goods
If you are a manufacturers' representative that also buys and resells, and therefore takes title to some of the products you sell, you will need to choose the code that most closely fits your business when filing your tax return. Remember, the IRS will compare your tax return to the population of filers that use the same code you choose for the purpose of selecting your return for further review.
You can use one of the free file options (irs.gov has a list of them) to file your taxes as long as you take it step by step. I've tried almost all of the free programs over the years (helping others file), and have stayed with a couple of them out of ease of use and convenience (freetaxusa and taxslayer). If you have any doubts, you're better off getting your free consultation with H and R Block or another provider and then deciding.
Just remember if you're claiming an expense, you need to have it documented. At convention, they said you aren't required to provide a receipt if the purchase was under $75 (unless it's for a hotel). Also, I believe gifts (aka host/hostess incentives) can be up to a $25 value and be deducted. Receipt or no, you still need to have the expense documented and keep it with your taxes.
Also, don't forget to deduct your check fees from doTERRA; if you had any they were itemized on the check stubs of each check.
On Monday, February 18, 2013 11:35:51 AM UTC-7, Becky Duncan wrote:
\How are we supposed to treat DoTerra income on our federal tax returns?--
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