20vtguy <> wrote:
>One of my clients sent me a 1099 MISC and it seems they included the
>totals of all the invoices as non-employee compensation total. They
>were parts that I purchased for them and they were noted as
>reimbursable expenses on the invoices. Also the sales tax on the
>invoice was included as well. Shouldn't they have deducted the amount
>of the expenses and the sales tax totals from the final non-employee
>compensation amount.
Nope, they did the correct thing.
>I don't want the reimbursed expenses and the
>sales tax counted as income since of course they aren't. What the best
>way for me to handle this on my taxes?
"Taxes" on line 23, Schedule C.
"Cost of goods sold" from Part III of Schedule C.
Other expenses on Part II of Schedule C.
The answers to all your questions in the instructions for
Schedule C, in Pub. 334, and in various other publications
that will be mentioned in these.
There are a few "gotchas", but not many. One of these being
that if they reimbursed you for the entire cost of certain
meals, you may be only able to deduct half that cost. You
will have to follow IRS rules for mileage as well.
Good luck--
Steve
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