Question about selling avon???

Question

do they pay you cash? is it taxed/w2 etc.

Answer 1

They send you checks.  The profit you have after your expenses is taxed.  You will pay income tax plus about 15% of self-employment tax (Social Security and Medicare).

You do not receive a W-2.  You do receive statements about what you bought from them.  You have to keep records of your sales and expenses.

Answer 2

You would be a "direct seller" and yes, any money over above your expenses is taxed on a schedule C.  In addition to any income taxes, if your net earnings were more than $400, you would owe 15.3% self-employment tax.

See irs publication 535 and 334.

http://www.irs.gov/newsroom/article/0,,i...

Answer 3

Your customers pay you however you choose to accept payments, and you pay Avon for your product.  Keep very good records of all of your income and associated expenses.  You aren't an employee - you don't get a W-2.  You'll file your tax return from your own records that you kept.  Yes your income is taxable.

Answer 4

You should go to www.irs. gov and read the following publications:

The instructions for Schedule C on the 1040 form

Publication 505 Tax Withholding and Estimate Tax

Publication 583 Starting a Business and Keeping Records

Publication 587 Business Use of your Home