Schedule C expenses

I am currently in a Mississippi state tax audit. I am an independent contractor and my invoices list my labor, supply's used that are needing to be reimbursed and any sales tax if applicable. On line 1 or the Schedule C it lists to input Gross Sales. I calculate the total of all of my invoices to my clients and input it on line 1 (this amount includes the supply's that the client reimbursed me for). Then under other expenses in Part V, I list the total amount of the supply's that the clients reimbursed me. That way I do not get taxed on the supply's as income. Is this the correct way to do it?

2135

Level 15

Feb 1, 2024 5:44:51 PM

Is this the correct way to do it? Yes, it is the correct way.

Level 15

Feb 1, 2024 5:47:12 PM

Well you only enter the total actual income you received on line 1, not just your invoices. But then you can expense the supplies you were reimbursed for.

Level 15

Feb 1, 2024 7:13:22 PM

If you are including the cost of the supplies as an expense and the reimbursement as an expense you are double dipping because you're deducting the same thing twice. if not you're ok.

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Schedule C expenses