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An individual performed services for our company and is not…

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An individual performed services...

An individual performed services for our company and is not employed by the company. The individual furnished material for the services as well as the labor, my question is the material included in the miscellaneous income of the 1099 form?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

Not that I am aware of

Submitted: 3 months ago.Category: Tax
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Answered in 4 minutes by:
3/20/2018
Tax Professional: Lev, Tax Advisor replied 3 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,119
Experience: Taxes, Immigration, Labor Relations
Verified

Yes - we need to include the cost of materials

See instructions

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

File Form 1099-MISC, Miscellaneous Income, for each person in the course of your business to whom you have paid during the year:
At least $600 in:

2. Services performed by someone who is not your employee (including parts and materials), box 7;

.

You may provide an invoice for material - or receipts - or other supporting documents - so the payee will be able to deduct that cost on his/her tax return.

Let me know if that helps.

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