For the last few years I've been paying for all my travel and meal expenses on my personal credit card and then adding the expenses to my invoice. This is great for my credit cards points which is why I don't mind doing it, but I can't seem to figure out if this is somehow making me pay more in taxes?
I file as a sole proprietor, last year let's say I made $120,000 in gross 1099 income, but $60,000 of that was strictly travel/meal expenses that the clients reimbursed for and included all together without separating in the 1099. Am I paying more in taxes than I should be? I keep track of all receipts and do deduct them in turbo tax in the appropriate fields, but are some expenses not actually fully being deducted from my taxable income? Is an S-corp a better filing status for someone in this position?
Thank you so much for the help.
