<prompt> Human: I do a lot of freelancing. Many projects require purchases that the client reimburses me for. Tax-wise, Ive been doing this on my Schedule C: Report all purchases as business expenses, regardless of reimbursement. Report all reimbursements as part of my income.Should I be reporting this differently since its not really income on my business per se i.e. its not money I ever keep?  <response>: As a contractor, your fee is your income, regardless of what kind of reimbursement arrangements you do with your clients. What you are doing is correct. Deduct all purchases from your gross income. Your client will file a 1099 for you with the full amount they paid you, and youll get into trouble if you dont report that as gross income. 