Reimbursed Expenses

[MMurphy1]

I am working 1099 as a contractor.  The agency employing me reimburses my hotel and pays a per diem for meals and expenses.  When they paid me, they combined both the hourly reimbursement and the travel expenses.  When they issue my 1099 at the end of the year will they divide this back out so it does not show up as income or will this be counted as income and  I will need to save receipts to then deduct my travel costs as an expense?

[DawnC]

They could do either.   If it is included, yes, you will need to save your receipts and deduct those amounts from your income.   If it is not included (they reimburse you under an accountable plan), then you won't need to deduct the expenses.   You need to keep detailed receipts either way.  

[Hal_Al]

Q. When they issue my 1099 at the end of the year will they divide this back out so it does not show up as income?

It's March 9th. You should have received a 1099-NEC by now.

As the other reply, it could go either way, but usually the expenses are included in the 1099-NEC amount.

You say they paid you a per diem for meals and expenses.  Whether the per diem is included in the 1099-NEC, or not, you should  report it as income.  You do not get to deduct the per diem amount. Yes, you will need to save receipts to then deduct your travel costs as an expense.