Purchasing stock photography on clients behalf

[LMM7]

I am a freelance Graphic Designer. My client does not have a stock photo account but I do. So I have been purchasing stock photos on their behalf and adding those charges to their overall project invoice. Will this be considering business income eventhough I am only being reimbursed (I don't add a fee for the purchasing process). When I do my taxes, I list that stock charge as a business expense. Is this correct? Will it remove it from my taxable income (eventhough the stock photo charge is included on my 1099-NEC income from that client)? Should I be doing this whole process a different way to avoid being taxed on something that is not income. Thank you!

[FranklinF]

Assuming that as a Freelance Photographer you receive one of the following forms: 1099-NEC, 1099-MISC, !099-K, you will file a Schedule C (individual Tax Return) or an 1120-S, if you are an S-Corporation. The bottom line is that you are NOT receiving a W-2.

Now, it appears that the arrangement you have with your client is ordinary and necessary for you to be able to secure business from this particular client. Best Practices (transparency and proper accounting principles) will dictate to record the Sales Revenue that you receive as income and record the expenses you incur to offset the income received. 

[LMM7]

Thanks for answering Franklin. Yes I do receive a 1099-NEC. I still don't quite understand your answer. Will this reimbursement charge be considered taxable income if I include it on an invoice with my design work charges? Should I send my design work charge as one invoice and this reimbursement charge as a separate invoice (somehow indicating to them that the stock photo charge should not be included on my 1099-NEC at the end of the year because it is not technically income just a reimbursement on their behalf? Thanks!

[FranklinF]

There always will be a paper-trail of sorts and for transparency it would be included as compensation, however, when you prepare your own taxes, you will include the associated expenses to this income which will lower your profit margin and you will NOT pay taxes on the additional amount of income.