My agency repaid all my expense , but include them in my 1099 . 100% was the responsibility of the client . schedule C will repaid only part of it . Is my agency wrong ?

[jyrobi]

I did a job away from home . The client was responsible to pay for everything . I submit my receipts to my agency.They invoiced the client. The client paid the agency for everything & my agency send me a cheque . But my agency included the total amount of the expenses on my 1099 . 100% was the responsibility of the client to pay for all the expenses  .My agency told me to field  a schedule C , But this will repaid only part of it { as the meal alone can only be deduct at 50% }. Is my agency  wrong to include those expense in my total of my 1099 ?... Can we see this in some article so I could forward for them to read it , therefore they could send me a corrected 1099 . Thank you and all the best 

[NancyG · Accepted solution]

There is no need to contact your employer. You are able to deduct 100% of meal and entertainment expenses in your situation.

Specific instructions for your individual business:

• After you have completed the preliminary set of questions for your business in TurboTax, you'll come to a summary type screen titled "Your Business"

Here's how to enter the meals expenses you had the directly resulted in the income you received:

• Under Business Expenses
• Click start/update across from Other Common Business Expenses
• Scroll down to Meals and Entertainment
• Click start/update across from Meals and Entertainment 100% Limit
• Enter an accurate description for your situation. Perhaps something like - Reimbursed Meals
• You need to make it clear that the meals expenses were a reimbursed which is the income that you received. This distinction is important since the majority of business meals are only 50% deductible.
  

Because you are reimbursed for meals and have to provide receipts to your Client (through your employer), your meals are 100% deductible. You can either enter the expenses as described above or as part of “Other Expenses” with the description of Reimbursed Meals.