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New Member
posted Jun 3, 2019 11:33:11 AM

How do I file a 1099-MISC form with Box 3 filed when the money is for a reimbursement - not actual income, so I don't have to pay taxes on it?

Hello, I am a Postdoc who received a $1,800 travel award for attendance to a science conference I presented at. The $1,800 had to be used to reimburse my travel expenses to the meeting. I now received a 1099-MISC form from the society with the $1,800 listed in box 3 as other income. Now, it appears that we owe more taxes. Since this money was a reimbursement and not income how can we accurately fix this to reflect that so we are not taxed for money I did not earn? 

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1 Best answer
Expert Alumni
Jun 3, 2019 11:33:12 AM

First, you will have to report the amount in box 3 of your 1099-MISC as income, because it's being reported to the IRS. It will appear on your Form 1040 as Other Income on Line 21. Then, you will report a corresponding negative amount on line 21 to zero out this income.

To report the income:

  • Report the 1099-Misc in the Other Common Income section.
  • Indicate that it is reimbursement, that it does not involve work like your main job, and that it did not involve an intent to make money. The income will be reported on line 21 of your return.

To enter the negative figure:

  • Go back to Less Common Income, Miscellaneous Income and Other reportable income.
  • Continue to the screen Other Taxable Income. Enter the description of the rebate, and a negative amount.

A corresponding negative amount will be entered, and line 21 will be zero.

3 Replies
Expert Alumni
Jun 3, 2019 11:33:12 AM

First, you will have to report the amount in box 3 of your 1099-MISC as income, because it's being reported to the IRS. It will appear on your Form 1040 as Other Income on Line 21. Then, you will report a corresponding negative amount on line 21 to zero out this income.

To report the income:

  • Report the 1099-Misc in the Other Common Income section.
  • Indicate that it is reimbursement, that it does not involve work like your main job, and that it did not involve an intent to make money. The income will be reported on line 21 of your return.

To enter the negative figure:

  • Go back to Less Common Income, Miscellaneous Income and Other reportable income.
  • Continue to the screen Other Taxable Income. Enter the description of the rebate, and a negative amount.

A corresponding negative amount will be entered, and line 21 will be zero.

Returning Member
Mar 16, 2025 4:38:33 PM

These instructions for the deduction from income are not valid or no longer valid for TurboTax Deluxe 2024.  Does anyone know how to enter the negative figure?

Expert Alumni
Mar 17, 2025 8:11:44 AM

If you need to make a negative adjustment to take away income that was reported on Form 1099-MISC,  use the steps below to report the income and report the same amount as a negative adjustment.  Ignore the messaging that says do not enter Form 1099-MISC in this manner.

 

  • Go to the Income section of your return
  • Scroll to the Less Common Income category
  • Click Start or Update beside Miscellaneous Income, 1099-A, 1099-C
  • Scroll to the bottom of that section and click Start or Update beside Other reportable income
  • Answer Yes
  • Enter your description and amount for the income you received
  • Enter your description and a negative amount for the income you received

 

The end result is that no additional income is reported on your return, but there are two income entries shown on Schedule 1 line 8z.

 

@ssfrancis