Question

How to enter material expenses

Forum|Forum|3 years ago
February 23, 2023
1 reply
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I performed work this past year, I supplied the materials and did the work. The company paid me and sent me a 1099-NEC which included total amount paid. How do I claim the materials I purchased for the job?

M

MinhT1

The materials you bought for the work you did are a deductible business expense. This expenses can be categorized as Supplies.

Please follow the instructions in this TurboTax Help article on how to enter Business expenses.

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W

Wondering Willy

Supplies my foot!! This is only good for "incidentals" up to $200 for paperclips and the such!!!! This is such bad info they gave... either the first reply who said "under supplies" or Turbotax is wrong on their representation of the catagory! Either way I find no good catagory for expenses (like the $2000 in paint alone that I bought for the project).

VolvoGirl

Yes you put materials under Supplies. Or if you don't like Supplies then use line 27 for Part V Other Misc Exp.

See Schedule C instructions for line 22.....

In most cases, you can deduct the cost of
materials and supplies only to the extent
you actually consumed and used them in
your business during the tax year (unless
you deducted them in a prior tax year).
However, if you had incidental materials
and supplies on hand for which you kept
no inventories or records of use, you can
deduct the cost of those you actually
purchased during the tax year, provided
that method clearly reflects income.

https://www.irs.gov/pub/irs-pdf/i1040sc.pdf