No, do not take the expense without reporting the income since you already know it was a reimbursement for the consumable supplies you purchased on your client's behalf.
It would seem they shouldn't be issuing the 1099-NEC with a zero as an income amount for your LLC. You have two options for your tax return.
- Do not include the income. Keep the 1099-NEC with your tax return, as well as any proof showing your receipt submissions and payments from the external agency. Do not deduct the expense you were reimbursed for.
- Add the $24,000 as income, then take the same expense. Keep the same records as noted in 1 above.
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