What if I'm an independent distributor/consultant or business owner?

Income you receive as an independent distributor/consultant or a business owner is generally considered self-employment income and is reported on Schedule C. You're required to report it on your tax return.

Examples include income from selling:

• Clothing and accessories (LuLaRoe, Thirty-One Gifts)
• Personal care products (Forever Living, doTERRA, Melaleuca)
• Household products (Pampered Chef, Scentsy)
• Beauty products (Nu Skin, Mary Kay, Avon, Younique)
• Health products (Advocare, Isagenix, Herbalife, Beachbody)
• Other items

You can, however, generally take deductions to help offset that income; some common deductions include:

• Car expenses (miles driven)
• Home office deduction
• Inventory
• Commissions and fees
• Office supplies
• Subscriptions

For more information regarding self-employment income and expenses, see the IRS site, Self-Employed Individuals Tax Center .