Income Tax Questions - Side Gig

[George 493]

My wife has been working as a makeup artist on the side for the last couple of years, and it's starting to pick up a little bit.  She keeps talking about everything being a write off, but we don't itemize our taxes (we rent our house so the way I understand it, we don't really have enough deductions to make that worth while), so I don't really know what we can and can't do from that perspective.

I'm trying to figure out what she needs to be tracking throughout the year, and if there is some sort of benefit that may be in play even though we don't itemize.  In other words, should she be keeping receipts for all product she purchases, track mileage, other stuff?  She's received 1099's from a few of the services she's contracted through, and she also does a lot of stuff direct with cash or venmo payments.

I just don't know where to start or what to search for at this point so I'm hoping to get a little feedback.  If more information is needed, i'm happy to share, pics and SSN excluded.  Any guidance is appreciated.

 

[Parliament 14383]

How much revenue are we talking?  $1,000, $5,000, $10,000 or $20,000?  If it's small, and she gets mostly cash, just pocket that shit.

[George 493]

She’s in that $5k range. Trying to do it close to legal. The expenses add up so if we can offset the income without having to itemize then that’s what we’re shooting for. Just not sure. 

[NeverMarryAStripper 22033]

Technically you should prepare a Schedule C that accounts for all of the income and expense items related to the business.  The expenses related to the business will be deductible even if you don't itemize deductions on your return.  

[George 493]

OK, cool.  So product assigned to her kit is an easy expense.  I assume she can also deduct mileage to/from appointments, as well, right?  Anything else worth considering?

I'll read up on the Schedule C.

[Chewbacca 7793]

11 minutes ago, George said:

OK, cool.  So product assigned to her kit is an easy expense.  I assume she can also deduct mileage to/from appointments, as well, right?  Anything else worth considering?

I'll read up on the Schedule C.

She can expense her cell phone and internet.

[Newdoc 3465]

Side gig “makeup artist”

[Jerry Callo 8832]

4 hours ago, George said:

She keeps talking about everything being a write off

 

[statsman 5519]

Supplies, licenses, marketing, training, mileage, meals (25%)

[Dbeasy 15239]

Keep good records and minimize the mixing of personal expenses with business expenses. Because at $5k of revenue, I suspect the IRS will divert an entire department from billionaire tax scams to scan your wife’s taxes.