Report payments for training materials that went to my students

[JasonDi]

I have a training business on the side.  The non-profit host/sponsor buys materials and stocks them.  Students pay me and others for training which includes those materials.  From the fees we charge the students we pay the host back for those materials.  The host pays sales tax and the materials aren't "sold" as goods.  The remainder we report on our income for our training labor.

The question is, we switched to an online registration system that collects the student fees.  They will issue me a 1099 and I want to record whatever portion of that on my taxes that represents the materials I paid the host back.  Where does that get reported?

Other Misc. seems right with a line item of 'Materials reimbursements' but not sure where else or how else I would need to expense this.

[Bsch4477]

Either what you suggested or just deduct under ”supplies”.