What happens when the exposes that was reimbursed and included in Box 7 on 1099 Misc, was for not only my own travel, but for a film crew for a project. For example, Box 7 stated $70K, which included $20K of reimbursed expenses. In reality, I made $50K in income. The $20K was for meals and travel expenses for 4 people. I paid from my own pocket and got reimbursed.
1) Can my employer add the $20K to my $50K income in Box 7? Taxes for me on $50K vs $70K minus business expenses will not be the same, especially considering some expenses are 50% deductible).
2) Since I am paying out of my own pocket, isn't the $20K like a short term loan? (Especially, I was paying for other people.
3) Can I enter the $50K on my tax form, even though the 1099 Misc Box 7 states $70K?
Thanks
