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, Usbourne)
- 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.
