I am self employed, use TT Deluxe to report income and expenses by cash method. In 2024 I took a business trip for which I incurred the expenses. My 2024 business income was greater than the trip expenses. The client reimbursed those expenses in 2025. Which should I do?:
1) Deduct the trip expenses from my 2024 income on my 2024 return, and then include the include the reimbursement with the rest of my 2025 income on the 2025 return; or
2) Say nothing on the 2024 return, and in 2025 deduct the expenses from my 2025 income since that was the year I received the reimbursement.
Thanks!
