I am employed as a third party contractor. My employer pays my salary W2. But the per diem and expenses I receive are paid by the company that employs my employer. So I received a 1099 NEC from that company. It includes all of the per diem (per government rates) and expenses that I was paid. I also had to do expense reports with all information included before I received the reimbursements. I know that I add the 1099 NEC as income. But how do I offset this because it is not supposed to be taxed since all requirements are met with the expense report.
