Yes, if your 1099-NEC includes the reimbursements, then you would be able to take a deduction for the meal expenses that they reimbursed you for. However, the meal expenses are not based on what they reimbursed you. In general meal reimbursement is 50% of what you spent or you may be able to use the per diem rate.
After you enter your 1099-NEC, you will be given the chance to Add Expenses. This is where you will add your meal expenses along with any other expenses you have for your 1099-NEC work
To enter your self-employment income click the following:
- Federal
- Income and Expenses
- Show More next to Self-Employment
- Start next to Self-Employment
- Yes, to you have any self-employment income or expenses
- Enter the type of self-employment work you do and you can select that you use your name for your business
- Click through a few more screens and you will get to a screen that says "Your XX info"
- Click Looks good
- Then you will come to a screen that says Let's enter the income for your business. It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks. Here is where you will enter your 1099
- If you do not select one, it will not let you enter your income
- Enter your self-employment income on the next screen
- Continue and on the next screen click add expenses.
- Select which expenses you had and were included on your 1099-NEC along with any expenses you were not reimbursed for.
This income will be reported on Schedule C which is part of your overall tax return. This also means you will be subject to SE Tax. If you did not pay SE Taxes in 2023, and if you plan to do this again in 2024, it may be a good idea to make quarterly estimated payments to cover your SE taxes of 15.3% and avoid penalties.
If you have health insurance through a non-employer, you may also be able to deduct your health insurance premiums as a business deduction. The Self-Employed Health Insurance deduction is limited to your earnings. Meaning, you cannot deduct more than you earned. This is also entered in the business expense section.
Tax Deductions for Business Travelers
Taking Business Expense Deductions
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