I'm a handyman and I received a 1099 NEC from a property management company. Along with my labor charges, the total they claimed also included parts and materials I purchased for the jobs which I already paid sales tax on. Is there a way to deduct the parts and materials from the total they claimed? It seems crazy to have to pay taxes on parts and materials I already paid sales tax on.
Thanks in advance!
Since you'll be reporting this on SCH C as a part of your personal 1040 tax return, enter the 1099-NEC exactly as printed in the business income section. Then you'll deal with your costs in the business expenses section.