can I be taxed by a contractor for work when I pay for the materials?

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can I be taxed by a contractor for work when I pay for the materials?

I'm having my kitchen renovated by a licensed contractor. The contract states that I'm responsible for purchasing the materials. I pay him labor only. He is charging me taxes also. Is that legal?

2007-12-12 23:36:28 · 2 answers · asked by granny2step 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

It depends on your state and its scope of taxation. Where I live, such labor is not taxed. However, if I go to a car dealership and have repairs performed, the labor there IS taxed.

You will need to check with your state's department of taxation for further guidance.

2007-12-12 23:40:18 · answer #1 · answered by acermill 7 · 2⤊ 0⤋

If labor is taxed in your state, and it probably is, they not only can tax you but are required to.

2007-12-13 08:24:23 · answer #2 · answered by Judy 7 · 0⤊ 0⤋