Information for all self-employeds -- independent, sole proprietor, 1099, sub-contractor, indie. Tax law and regulations have a profound impact on all of you. I am a practicing accountant. I post simple and easy-to-understand answers to complex tax questions asked by you -- my fellow indies. You will learn that tax savvy and recordkeeping know-how can save you time and money as well as lower your stress and anxiety level and help form the foundation of successful self-employment.
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?
Jessica
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
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