I am a freelance Graphic Designer. My client does not have a stock photo account but I do. So I have been purchasing stock photos on their behalf and adding those charges to their overall project invoice. Will this be considering business income eventhough I am only being reimbursed (I don't add a fee for the purchasing process). When I do my taxes, I list that stock charge as a business expense. Is this correct? Will it remove it from my taxable income (eventhough the stock photo charge is included on my 1099-NEC income from that client)? Should I be doing this whole process a different way to avoid being taxed on something that is not income. Thank you!
