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Get your taxes done using TurboTax
@bluecollarsocialist What? You do not pay tax on it again. If you get a 1099NEC that includes materials, you report the full amount as income then expense the materials. You only pay tax on the Net Profit. If they included the cost on the 1099NEC they must have paid you for it or you charged them for it.
You need to post an example. Like if the 1099 was $1,500 (1,000 for labor and 500 for material). Did they actually pay you 1500? So you had 1500 income minus the 500 you spent leaving you a Net Profit of 1,000. You only pay tax on the 1,000.
‎November 22, 2021
1:26 PM