Thank you very much. That makes it a lot clearer. I thought the actual 1099 was relayed to the IRS so that they can cross reference/cross check it with the expenses from the company that is 1099 me.
I assumed that the IRS compared this between companies to make sure that people (either the payer or the receiver) are not cheating on their taxes.
Therefore, I will only include total income. Because this actually also completely resolves another issue. A few customers pay me for things that I buy on their behalf during a job. So, for example, I have to get an extension cord from Walmart; I bill that back to them on the invoice. With this new understanding, I can use the QB total profit and not have to worry about a client that might 1099 me for both services rendered, and expense reimbursement/billable expenses.
Thanks,
T
