Greetings,
My daughter had an externship in NYC last summer. She was paid for the 4 weeks she spent there and was reimbursed for a portion of her travel and lodging costs incurred during the externship. The compensation and the expense reimbursement were combined together and reported in Box #1 (Non-employee Compensation) of IRS form 1099-NEC. Is this the right reporting form? Should expenses be included? It appears to me that from this form her only choice is to report the gross amount on Schedule C (form 1040) as income and reflect expenses to net out to the net amount she received. That might be aggressive as I am not sure that travel and lodging costs for this would be deductible on Schedule C. Any thoughts on this would be welcome. Trying to get the company's CPA to share a bit more of their thinkng but so far, not much.
