A 1099-Misc includes reimbursement for my expenses; should I deduct the expenses first before filling out Box 7?

Forum|Forum|7 years ago
May 31, 2019
2 replies
42 views

I purchase airline tickets, meals, and pay for ground transportation out of my own pocket. Then, I get reimbursed by the corporation that hires me to do the consultations. Their 1099-Misc includes all payments to me in Box 7. Should I deduct the amount for which I was reimbursed before completing Box 7 in turboTax?

TurboTax Self Employed Online

Best answer by

Hi commjo,

The 1099-MISC will need entered in full as Business income and then you can deduct all related business expenses. This will produce a net income on which your self-employment tax will be calculated. You can't net it from the beginning because the IRS is going to receive a copy of the original and be looking for that amount to be reported as gross. Hope this helps!

Thank you for using TurboTax!

Anonymous

Answer

Hi commjo,

Thank you for using TurboTax!

commjoAuthor

Level 2

Thanks TurboTaxAimeeC, that's what I didn't understand! Hopefully this will also answer other individual contractor's question on this.

Sch00lbus

Level 2

I want 100% credit for $9000 in fuel. I was reimbursed but 1099 shows it as income. How do I get the 100% credit on schedule C

DaveF1006

Level 15

This would be classified as actual expenses when you report out your car and truck expenses in your Turbo Tax return. Just an FYI, if you have claimed mileage in previous years for your car and truck expense, you will not be able to claim actual expenses this year.

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