I am a handyman (self-employed). I am preparing my 2011 taxes. When I bill a customer, they pay me for labor and materials. Are the materials also entered as income and then taken as a deduction or how should they be listed? When I started the state return through my tax software, it brought forward the “gross income” as 55,600. that was before the 13,000 in materials that were job specific (boards, doors, etc. bought for the job). However, if they consider that as my gross income, that throws me into losing our state tax credit. I am not sure if I am listing things right or not.
As An Independent Contractor, What Is Considered My Gross Income?
By admin Posted in: Tax Software
See More Infomations
New Articles in Category12
Monthly Archive:
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- Categories
- Anti Spam Software (586)
- AntiVirus (3072)
- Backup Software (1179)
- Database Software (3124)
- Firewall Software (2135)
- Network Security Software (2153)
- Parental Control Software (2016)
- PDF Software (1630)
- Privacy Protection Software (444)
- Security Suites Software (967)
- software (1597)
- Spyware Blockers Software (2531)
- Tax Software (1318)
More Interesting Things
©2011 Softwares Reviews, All rights reserved.
Whatever money you receive should be added to gross receipts & then on the expenses side, add the expenses on the materials that you bought for your business. You should check with your state rules that are they going to include the material receipts in gross income.
Gross income is usually meant to be the sum of all the checks and cash you received, no matter how it was allocated after that. Check with a tax person for your state, but your gross income was $55,600.