You enter it as Turbo Tax Aimee said above. It certainly will change the tax due on it. You enter the full amount including the reimbursements on the 1099Misc as income and then enter all the expenses including the things you paid for that were reimbursed. Materials would usually be entered under supplies. Or you can enter the expenses under Other Expenses. Then you only pay income tax and self employment tax on the NET Profit on schedule C.
