I help an owner with the cleaners of an airbnb, nothing to do with guests. I schedule the cleaners and I shop(and pay for) for the cleaning supplies and the goodies we leave for the guests. They reimburse me for all these shopping expenses. Lets says the 1099 shows $6000 for the year. Lets say my actual wage is $3500 and all the stuff i bought is $2500. Where do i report that $2500? in supplies/business deductions?
On the Sch C you report ALL the income they paid you then deduct the expenses for the supplies to get a net taxable income ... follow the interview secreens and the program will do all the math and fill in the forms.
If you are new to being self employed, are not incorporated or in a partnership and are acting as your own bookkeeper and tax preparer you need to get educated ....
If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income. So you need to keep your own good records. Here is some reading material……
IRS information on Self Employment….
Publication 334, Tax Guide for Small Business
Publication 535 Business Expenses
Home Office Expenses … Business Use of the Home
Publication 946 … Depreciation
There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
thank you for your response! of course i reported the entire amount. and i went through all the questions, but i just thought i would double check, the "where" in my case. It wasnt super clear, and i thought id get a second opinion. i would assume, they could be just counted as supplies, as that's technically what they are, im buying random items for the airbnb only. but im buying them and being reimbursed fully, no markup, not selling them to that airbnb owner. but is it considered as selling?
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