Wednesday, October 20, 2010

Income is what you actually receive.

Hi June,

I have been a self employed massage therapist for three years. My question is, I just ran a promotion with a local company. The company sold vouchers of my services for 50% off my regular rate and I get 50% of the sales.

How do I write this off on my taxes at the end of the year?

Boylston, MA

Hi Jessica,

Congratulations on setting up promotion.

This is a simple situation. The discount or coupon has no impact on how your income is taxed. If you generally charge $100 for a massage and instead, with the coupon, you now receive $50, then your income is $50.

-- June

No comments: