In my case, it should not be included as income. The company I did contract work for agreed to pay me X amount per day, plus all expenses. Since these were travel jobs, nearly all of my expenses are food and lodging, only 50% reimbursable by the IRS. In prior years, they issued me a 1099 for only the agreed upon amount of pay. Just a week ago, after they mailed my 1099, they told me they were including the reimbursements in that total.
