Thanks for your speedy reply. I sent my client a line item invoice showing material costs and labor. I specifically only charged tax on material and not labor thinking that this was not going to be reported. In the future, am I allowed to charge tax on material and labor in the state in which the client resides when I am just a freelancer doing some side work and not a company? Or do I never charge tax? The only reason I showed tax on the invoices was because it was the tax that I paid originaly for the material and I was just trying to recoup this. Also, I charged no travel fees and the job was 250 miles away. I did charge for lodging and per diem for meals. The client's accountant asked for all receipts so they could deduct from the invoice total and then would send the 1099 to me. Can I just refuse that and deduct this on my tax return after I receive the 1099-MISC?

Are the taxes I will pay from the 1099-MISC simply the rate form my overall tax bracket?