Yes, based on the information provided, this was actually a reimbursement from your company. When you move it to box 3, be sure to answer as indicated below.
It's important for you to select 'None of these apply" and then you should also select the following:
- Other Common Income > Form 1099-MISC
- 'No' on the screen 'Did the '____' involve work that's like your main job?'
- 'No' on the screen 'Did the '____' involve an intent to earn money?'
This will report the income without any business activity and it will show up on Form 1040, Line 8 (From Schedule 1, Line 8z).
Next follow the instructions provided by our awesome Tax Expert @KrisD15. Likewise it's important to handle this differently through the business in the future using the 'accountable plan' rules. Keep all your documentation and notes with your tax file should you need it later.
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