I performed work this past year, I supplied the materials and did the work. The company paid me and sent me a 1099-NEC which included total amount paid. How do I claim the materials I purchased for the job?
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The materials you bought for the work you did are a deductible business expense. This expenses can be categorized as Supplies.
Please follow the instructions in this TurboTax Help article on how to enter Business expenses.
Supplies my foot!! This is only good for "incidentals" up to $200 for paperclips and the such!!!! This is such bad info they gave... either the first reply who said "under supplies" or Turbotax is wrong on their representation of the catagory! Either way I find no good catagory for expenses (like the $2000 in paint alone that I bought for the project).
Yes you put materials under Supplies. Or if you don't like Supplies then use line 27 for Part V Other Misc Exp.
See Schedule C instructions for line 22.....
In most cases, you can deduct the cost of
materials and supplies only to the extent
you actually consumed and used them in
your business during the tax year (unless
you deducted them in a prior tax year).
However, if you had incidental materials
and supplies on hand for which you kept
no inventories or records of use, you can
deduct the cost of those you actually
purchased during the tax year, provided
that method clearly reflects income.
Thanks for your input. Then if this is true, Turbotax needs to completely change their "Supplies" catagory instructions (limit up to $200 is FALSE then) and EVERY example under Supplies is only for incidental paperclips, ink for your printer... it is ALL office related!!! There are hundreds of thousands of contractors in this state alone and not one mention anywhere in tax instructions from turbo tax or the IRS that I've read for how to deduct materials bought (which could be a million dollars on a big project). WHERE is the catagory Turbotax? Read every catagory ... nothing applies!!!
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