Printing of materials for client: cost of goods sold?

[lordchang1]

I am a marketing consultant doing my own taxes for the first time. When I have materials printed and mailed for a client (i.e. newsletters to be mailed to his customers, mailing list, mailing processing and postage), do those come under "Cost of goods sold" or "Payments to independent contractors"?

Thanks, 

Marcus

[BillM223 · Accepted solution]

Cost of goods sold is really for inventory, like you produce things and sell them.

Payment to independent contractors is usually for people that you send a 1099-MISC to.

What you are describing is just a service you are providing for your client, in which use you a another business (to whom you wouldn't send a 1099-MISC) to produce some materials for your client.

I would put the various components under "Other" with a description for each subcategory, or just one line like "newsletter processing and mailing for client".