How to File Avon Sales on New York State Taxes
You must include income from selling Avon products on a New York state income tax return or possibly face penalties. Avon, New York City-based cosmetic and home product seller, uses independent contractors to sell Avon items. Independent contractors do not have state taxes withheld from Avon payments and assume responsibility for claiming income received to taxing authorities. The Internal Revenue Service requires that Avon issue Form 1099-Misc, used to report miscellaneous income, to each contractor.
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Instructions
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Copy the Schedule C from your federal tax return showing the Avon sale total. New York State requires you use the Schedule C from the federal return for business income.
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Get the New York State Income Tax Form for full-time residents, the IT-201 form. Go to the official website of the New York State Department of Taxation and Finance to print the form and instructions or call 518-457-5181 to request the forms by mail. Visit local libraries and post offices to get the forms if you not do not want to download or call.
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Enter the total income or loss, which includes the Avon sales, as shown on the Schedule C copy, on line 6 of the IT-201 form, "Business income or loss."
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Add the Schedule C income with all the other income and losses shown on and including lines 1 through 15 on the IT-201 form. Enter the total on line 16.
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Complete the New York State return following the instructions. Attach the Schedule C copy to the back of the IT-201.
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Tips & Warnings
Keep records of all Avon activities to track losses that reduce the tax burden.
References
- New York State Department of Taxation and Finance: Form IT-201 and IT-150
- New York State Department of Taxation and Finance: IT-201 Form (2010)
- New York State Department of Taxation and Finance; Contact Us: Personal Income Tax Information Center
- Avon: What is Direct Selling?
- IRS; Chapter 3: Examination Techniques for Specific Industries: Form 1099-Misc
