Do I need to 1099 a large refund to a customer for materials they paid out of pocket
I am a contractor and I need to refund a large amount over $20k to my customer for reimbursement of materials they purchased themselves on there credit cards. Would I need to 1099 them?
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1 Best answer
TomD8
Level 15
Jun 6, 2019 6:05:58 AM
No, because the refund is not taxable income to your customer. It is a return of their own money.
1 Replies
TomD8
Level 15
Jun 6, 2019 6:05:58 AM
No, because the refund is not taxable income to your customer. It is a return of their own money.