As independent business owners, U.S. Advisors can expect to receive a 1099-NEC form from Creative Memories (CM Group Holdings Inc) if, in a calendar year, the Advisor had more than $600 in: combined earnings, Account Credits issued, free gifts from promotions and/or earned incentive prizes.
Earnings must be claimed as income with your tax filing each year. Advisors, as independent contractors, are responsible for payment of their own income taxes and costs associated with operating their CM business. In the first month of each calendar year, CM issues tax form 1099-NEC for the previous year. A 1099-NEC (“1099”) will be issued for each Advisor who has earned Income of $600 or more or has purchased more than $5,000 in CM Products in that previous year.
Important things to know:
- The value of prizes/free gifts earned from promotions are NOT included on Advisor 1099-NEC forms when customers order directly from Advisors’ websites.
- By law, the Home Office is required to provide 1099-NEC forms to all qualifying Advisors by January 31 of the following year, and will share the same information with the Internal Revenue Service. To do so, the Home Office must have each Advisor’s Social Security Number and legal name. Please click here for the steps on how you can securely enter your SSN.
- We will be reaching out to you if you do not have your SSN entered and we see that you have met the requirements to receive a 1099-NEC form.
- If/when you receive a 1099-NEC form you should include it as part of your 2022 business tax reporting. If you have questions about taxes and your business, you will want to consult with your tax professional.
- Whether you consider yourself a personal-use Advisor or business-focused Advisor, you and/or your tax preparer will want to note what the IRS has to say about purchases for personal use on the back of Schedule C.
- US Advisors: If your Grand Total Earnings don't match your 1099 form, it’s likely that one or more orders were refunded. Your 1099 form is the tax-accurate form to use when reporting your income for the tax year.
- CM will be posting 1099’s in each Advisor’s account on their My Account page. By signing into their account after the January 13, 2023 Compensation Policies update is posted on the CM website, each Advisor is consenting to indefinitely receive their 1099 electronically via their CM Account.
It is found on your My Account page above your Recent orders - see highlight in yellow below.
To run your Year-End Reports, you’ll want to visit the Advisor Earnings Report on your "My Reports" page and run these dates:
Dates to Run for 2022 Taxes
|Earnings||Type||Date Range (US & CA)|
12.26.2021 - 12.24.2022
12.26.2021 - 12.24.2022
|Account Credits and Product Achievements||ACHIEVEMENTS||1.1.2022 – 12.31.2022|
|Spend/Get Promotions & Misc. Earnings (Trips, etc.)||PROMO||1.1.2022 – 12.31.2022|
Please also watch this video, if needed:
PLEASE NOTE: These videos are intended for instructional use only and may show products that are no longer available for purchase.