Payments made by customers for their own materials...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

Payments made by customers for their own materials should be included in the self-employed income ?

As a self-employed (finish carpentry), I purchase the materials I need to do the job myself, and then I bill the customer and provide the receipts. I always prepare, keep and provide separate invoices, one for materials, one for labor. The customers pay either, by one check for materials and labor combined, or separate checks, one for labor, one for materials.

Do I need to include the amounts I get for materials in my income and deduct them later? If so, where exactly and how.
Or should I only report the income I made from the actual labor alone?
3 Replies
Level 15

Payments made by customers for their own materials should be included in the self-employed income ?

Report all payments as income and deduct all expenses paid by you as expenses. 

Level 1

Payments made by customers for their own materials should be included in the self-employed income ?

Thanks. And where do I do that ?
1. Under Supplies Expenses or
2. Under Inventory Expenses (Cost of Goods with zero inventory at the beginning/end of the year)

Level 15

Payments made by customers for their own materials should be included in the self-employed income ?

Under Expenses >Supplies 

Dynamic Ads
v
Privacy Settings