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robertleigh
New Member

Is sales tax paid to an independent contractor for goods included as non-employee compensation on a 1099? If so, where are the sales taxes deducted on the schedule C?

 
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DanielV01
Expert Alumni

Is sales tax paid to an independent contractor for goods included as non-employee compensation on a 1099? If so, where are the sales taxes deducted on the schedule C?

It depends.  You can actually include just the flat amount that you paid the contractor, even if that amount includes "nontaxable" reimbursements such as sales tax or mileage reimbursements.  Once you claim this amount, you don't need to enter anything else.  Your contractor will have to deduct the sales tax on his/her Schedule C.

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DanielV01
Expert Alumni

Is sales tax paid to an independent contractor for goods included as non-employee compensation on a 1099? If so, where are the sales taxes deducted on the schedule C?

Just as a side note:  You may wish to advise your contractor that they will need to deduct the sales tax from their income
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DanielV01
Expert Alumni

Is sales tax paid to an independent contractor for goods included as non-employee compensation on a 1099? If so, where are the sales taxes deducted on the schedule C?

It depends.  You can actually include just the flat amount that you paid the contractor, even if that amount includes "nontaxable" reimbursements such as sales tax or mileage reimbursements.  Once you claim this amount, you don't need to enter anything else.  Your contractor will have to deduct the sales tax on his/her Schedule C.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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