One question that has not been addressed is that you will pay social security tax on this income if reported on your 1099. I understand how you can show the reimbursed item as an expense and thus your bottom-line profit for income tax purposes will not be impacted but how do you modify this so you don't pay social security and other self-employment taxes as turbo tax automatically takes box 7 and calculates the self-employment tax (you do get a 50% write-off as a deduction but still you have now overpaid on self-employment taxes.
I would appreciate feedback and suggestions on this. Thanks!
