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The money you receive from the company is taxable income.
This would be offset somewhat by your home office deduction, if you itemize your deductions.
If you were to set up a formal business entity, you could also deduct the cost of doing so.
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Is the money received for things like buying a computer or paying for internet also taxable income?
But, again, the payments you make to buy the equipment or pay the bills can also be deducted on your taxes.
So, I buy a $1,000 computer and the company reimburses me $1,000. What happens after that?
Then, when you prepare your taxes would be able to deduct that expense (either in full or depreciate it) on your taxes, thus reducing your tax liability.