If your contractor is charging you $600 for a project, for example, but stopped at Home Depot and bought a $50 part and paid $5 Sales Tax on the part, and you gave him $655, put $655 on your 1099-NEC.
He will report the $655 1099-NEC income, report $600 revenue, $50 for supplies, and $5 Sales Tax as expenses against the income on his return.
Hope this helps!
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