I'm the sole proprietor of an LLC that specializes in film production and I paid an independent contractor (a make-up artist) an amount for their services and a second amount for their make-up supplies and materials. I recently submitted the total amount (services and supplies) to their 1099, and they recently contacted me and said that the amount I reported was incorrect and that I should only report the cost of their services while the cost of supplies and materials should fall under my own deductions for producing the film. Was I correct to report the full amount on their 1099 or should I have only reported the cost of their services and deducted the supplies myself?