Question

I earned commissions as an Arbonne Consultant. Most were for items purchased for personal use. Where do I deduct this income amt from schedule C, & what do I call it?

Forum|Forum|7 years ago
June 3, 2019
2 replies
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I purchase health products under my husband's name--he is listed as a client, but we both consume the products daily. (protein shakes, skincare, etc.) The products are paid from my checking account.

TurboTax Deluxe Windows

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hineskhAuthor

I AM an Arbonne Consultant. I did make commissions that are reportable as income on Schedule C. As an example, I made $10,000 in commissions, but $8500 of those commissions were on sales to me. (comes out of my checking account). The $8500 would not actually be income to me, it was just my discount being sent back to me. I don't know what to call this when I subtract it from my business income, or where exactly to list the amount.

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DianeW777

The purchases from Arbonne that are for personal use are not part of the tax return. If you are not in the business of being an Arbonne Consultant, engaged in the activity for a profit making venture, then this is hobby income. The income and the expense should be listed under hobby.

Please use the information below to enter your hobby income and expense. Keep in mind:

that the hobby expenses are used only if you can itemize deductions and are further limited in the miscellaneous expense category by 2% of your adjusted gross income (AGI), and
that all hobby income is taxable regardless of whether the expenses are used on the itemized deductions (if the category is too low or standard deductions are used).

Sign in to your TurboTax account.
Click on Federal Taxes tab.
Choose Wages and Income.
Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C.
Click Start to right of Hobby income and expenses.
Click the image attached to enlarge and view for assistance.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

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hineskhAuthor

I AM an Arbonne Consultant and sold products as a business venture, not a hobby. I did make commissions that are reportable as income on Schedule C. As an example, I made $10,000 in commissions, but $8500 of those commissions were on sales to me. (comes out of my checking account). The $8500 would not actually be income to me, it was just my discount being sent back to me. I don't know what to call this when I subtract it from my business income, or where exactly to list the amount