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Okay, this is quite confusing. Per Publication 535 posted as of 2021, a business should NOT deduct state and local sales taxes they collect from the buyer to pay to the state AND they should not be including sales tax in gross receipts or sales.

So it seems that we should NOT be including the sales tax amounts that we (the buyer) paid to the independent contractor on the 1099 NEC forms, as those amounts are specifically reported to the CDTFA or the state government. Is that correct?