If you sell cosmetics and other products for Avon, the Internal Revenue Service considers you self-employed. You report your Avon income and business expenses on Schedule C, the form for self-employment income. After you subtract your expenses from your income, report the net on your Form 1040.
Income and Expenses
Any money you receive from Avon counts as taxable income, including sales, commissions, bonuses and the value of free cosmetics. If you recruit other sales representatives, you get a commission on their sales. That also counts as taxable income. You can deduct expenses such as the cost of driving to sales appointments.
As a self-employed professional, you use Form SE to calculate self-employment tax. This is equivalent to the Social Security and Medicare taxes you would pay as an employee. You can write off half of your SE Tax on Form 1040.
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