0

Can someone provide me information on how taxes are impacted in the following scenario:

  • I am a web developer
  • My clients are charged for infrastructure setup fees (such as hostnames, servers, etc)
  • These fees are reflected in my invoice in addition to my hourly rate Paypal sees it all as income, but a large percentage is not income since it is fees for infrastructure/supplies for my client (that they could have paid for).

Is there documentation on how I file this difference come tax season? Is it really all considered income since I am not actually gaining any profit? I am using Paypal to do invoicing (so they send me a 1099-K).

Thanks

1

You'll include the various costs you incur as expenses when you file your taxes and they won't be included in your taxable income.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.