Solved: Most of my 1099 Payer's included their equipment and supplies in the income amount. I don't want to pay tax on that. I'll get flagged if I put in correct income What2do?
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Most of my 1099 Payer's included their equipment and supplies in the income amount. I don't want to pay tax on that. I'll get flagged if I put in correct income What2do?

 
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Most of my 1099 Payer's included their equipment and supplies in the income amount. I don't want to pay tax on that. I'll get flagged if I put in correct income What2do?

If your customers have reported purchases as well as services on Form 1099-MISC, you may wish to request a corrected 1099. 

However, you should have expenses to offset the equipment and supplies that were provided to your customers. You should report the net profit from those items if you didn't bill them at cost.

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Level 7

Most of my 1099 Payer's included their equipment and supplies in the income amount. I don't want to pay tax on that. I'll get flagged if I put in correct income What2do?

If your customers have reported purchases as well as services on Form 1099-MISC, you may wish to request a corrected 1099. 

However, you should have expenses to offset the equipment and supplies that were provided to your customers. You should report the net profit from those items if you didn't bill them at cost.

View solution in original post

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