MLM Directory

MLM distributor,the company charge me a tax,i give it also to costumers w/ tax.do I need to pay income tax?

I pay also tax for the products were I bought from the company 14% I guess,I gave it to costumers plus tax .0975%,which I devided to the costumers the tax that I paid.

Public Comments

1. YES you have income and it is Taxable
2. you are taxed on Schedule C and schedule SE to form 1040 on the net income of your business. you'll have to read the statement the company gives you to determine what the 14% tax you've paid is for. example: if it is a customs duty/import tax on merchandise imported from Europe, this is neither an income nor a self-employment tax and is simply a business expense.
3. yes you do have to file that with the irs. i"m sure you accountant is aware of this, but it"s up to you to have your records in Oder so the accountant can do the work..
4. If you earn a profit as an MLM distributor, you will need to pay income tax on the profit. Good luck.