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Get your taxes done using TurboTax
No, not the same way. You can still add the income and then remove it by the amount of your expenses. The tax law can be confusing and a reimbursement should not be taxable income when you are not self employed and not being paid for your time. Based on the original post, it is strictly for expense reimbursement. Follow the steps below to enter the income and the reimbursement negative. Keep the Form 1099-NEC in your file with the details of what the money was paid to you for in case you need to show it later.
Instead you will enter Miscellaneous Income using two entries, one for the income and then one for the negative expense.
Other Miscellaneous Income:
- Sign into your TurboTax Online account
- Go to Tax Home (left panel) Wages and Income section
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable Income > Enter a description (----) and the amount
Other Miscellaneous Income:
- Sign into your TurboTax Online account
- Go to Tax Home (left panel) Wages and Income section
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable Income > Enter a description (----) and the amount as a negative for your expenses (-100)
You can review these entries on your Form 1040 by using the following steps.
From the left rail menu in TurboTax Online:
- Select Tax Tools (You may have to scroll down on the left rail menu.)
- On the drop-down select Tools
- On the pop-up menu titled “Tools Center”, select View Tax Summary
- On the left sidebar, select Preview my 1040
For TurboTax Desktop, change to 'Forms' and review the forms
This will report the income without any business activity and it will show up on Form 1040, Line 8 (From Schedule 1, Line 8z).
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