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
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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".
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".
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