1099

[carfillmore]

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My husband has a window cleaning buisness. When he does a job for a larger corp he is 1099. When the company sends us a 1099 they include the sales tax, that my husband charged them, in the total income that they paid us. For example, if my husband does a $1000 job he charges $82.50 in tax, when they sent us a 1099 they show $1082.50 as what they paid us but really we only got $1000 0f that because we paid the $82.50 to the state, we live in Texas. On our taxes how do we show that it is sales tax and not income? Is there a form that we use showing what we paid into the state so we don't have to claim that as income? Thanks for any help!!!

[Taxhound]

When you go to file the Sch C for his business, you'll total up any sales tax he collected on line 23 as an expense. That way, you only get taxed on the income he recieved and not the tax he charged.