Freelance

[jabeddoe]

Tennessee. Hi! In my line of work I get advance checks of company money to spend in material and props so I can do my job. This material is later used in a set or a studio for photography or video production. The money isn’t mine but it’s deposited in my bank account. In other words I spend money from a company that is making a commercial or production under my judgement.
Afterwards I present receipts and prove of purchase that justify the expense.

This money is not supposed to reflect on my 1099 but the agency that represents me is including it anyway.

So basically I’m paying tax in money that I didn’t earn and doesn’t belong to me. What can I do?

 

[LdiJ]

Tennessee. Hi! In my line of work I get advance checks of company money to spend in material and props so I can do my job. This material is later used in a set or a studio for photography or video production. The money isn’t mine but it’s deposited in my bank account. In other words I spend money from a company that is making a commercial or production under my judgement.
Afterwards I present receipts and prove of purchase that justify the expense.

This money is not supposed to reflect on my 1099 but the agency that represents me is including it anyway.

So basically I’m paying tax in money that I didn’t earn and doesn’t belong to me. What can I do?

You deduct the expenses on your own income tax return. That is actually the normal way that it's done.

 

[jabeddoe]

Thanks! I worked in California before for 5 years and the companies would never include advances in my 1099 that’s why is confusing for me.

 

[FlyingRon]

They should have, unless they were too small to trigger the reporting requirement.

 

[PayrollHRGuy]

And you should keep copies of the receipts that you turn into your clients.

 

[FlyingRon]

Any money you get, whether expenses (or supply reimbursement) or your actual fee gets reported in the 1099. I learned this 35 years ago when I did my first consulting gig. You need to track your expenses so you can deduct them on your sched C from the gross receipts.