A portion of my income on 1099-MISC is reimbursement for travel expense. How do I separate that when filing? I shouldn't have to pay tax on reimbursement income correct?

It depends. Since it was reported to you on Form 1099-MISC, it must be included in income and there are no offsetting expenses allowed due to the Tax Cuts and Jobs Act. 

• If the employer paid you through an accountable plan (see page 29 of IRS Publication 463), only what was already included in your W-2 would have been reportable.
  • The reimbursing income you received would be offset by the expenses you incurred.

When income is received on Form 1099-MISC from an employer, it should have been included in wages. It cannot be offset by expenses.

 

To report it, you have two options.

• Option 1: To declare this income as Other Common Income from Form 1099-MISC:
  • From the left menu, select Federal
  • Wages & Income, Scroll down to Other Common Income
  • Click Start by 1099-MISC
  • On the Does one of these uncommon situations apply? Select Taxpayer's employer reported this extra money on a 1099-MISC but it should have been reported on a W-2 and continue through the rest of the entry.
     
• Option 2: To declare this income, as Less Common Income:
  • From the left menu, select Federal>
  • Wages & Income>
  • At the bottom of the income already reported, click Add more income or scroll down
  • Less Common Income click Show More>
  • Miscellaneous Income, 1099-A, 1099-C click Start>
  • Other income not already reported on a Form W-2 or Form 1099 click Start
  • Click Yes>Continue>Continue>Yes>Employee compensation that was not reported on a W-2 click Continue
  • You will need to identify your employer, their EIN (found on your W-2), and your annual wages. And identify other expenses reimbursed by the employer. Then, click done. TurboTax will handle the rest.

 

 

Hi, I saw this, and my question relates: So, I was paid a stipend and additional travel reimbursement. I combined the stipend and travel reimbursement as “other income” (as there isn’t a 1099) then did mileage. Does that work? The amounts were almost exact ($382 theirs; $400 stand mileage) And in Case #2, I received a 1099 for a fee, but I got travel reimbursement on an additional check; however, travel here was $100 (which covered a hotel stay) and mileage was considerably more which I wasn’t reimbursed for. So, do I just not put in the hotel or add the $100 as “other income” and deduct the hotel room?

his is correct- just be sure to keep the receipts and record of how you determined the reimbursements.

his or This? 🙂 Which is correct #1 or #2? 

If your income is reported on a 1099-MISC, You can file as Self Employed, and deduct the travel expense and perhaps some other expenses.