The only way you can deduct the expenses is if you list the income on Schedule C as a business expense. This is per IRS rules that no longer allow deductions for a number of things including employee business expenses and even to claim the money you lose gambling against the money you win gambling you need to itemize your return.
Yes, they likely included the expense reimbursement in your 1099-NEC as they should have. So, there really would not be a point in asking them to revise the 1099-NEC since they have to account for where there money went.
So basically, you can report it as other income in the less common income section and leave the expenses included in your income or you can report it as business income and deduct the expenses.
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