If my husband buys materials for the client, and they pay him back with no mark ups, where do I file that amount? Please and thank you!

[MaryK4]

The best way to report it is to include it as income (either as a separate entry or if it is included on invoice you can enter as general income) then deduct the same amount as supplies.    This way you will records of income and payments to buy the supplies in your accounting books.

Because it is not considered inventory, you do not have to keep track of the Cost of Goods sold as a small business.

[Bsch4477]

When he buys supplies he deducts that expense on Sch C and when he is reimbursed for those supplies as part of his payment he includes that as income on the Sch C so one balances out the other.