I realize that I take deductions on the Schedule C for supplies and tools that I buy. But it seems strange to buy paint (and other things like primer, wood filler, etc.) for each job and then get paid for the job (labor plus materials) and be taxed on something I bought for that specific job. As an example - I have a job where I charged $800 for labor and bought $200 worth of paint. The invoice I gave the client was for $1000. So when I do my taxes I include that $1000 as income. But $200 of that was not income, it was simply me going to to paint store "for" the client and buying something for them. If I simply claim the $1000 as income and then list the $200 as supplies, my taxable income does not go down by $200 - I pay tax (income and self employment tax) on an item I purchased for my client. It seems like an incorrect way to do this. Am I wrong?
