If employer included reimbursements as income on 1099-MISC, how do I classify expenses such as microwave, bedding, or kitchen utensils that the employer told me to buy?

atvaughan — Wed, 05 Jun 2019 01:51:29 GMT

I worked as an independent contractor hosting an airbnb for an employer and they had me buy random supplies for the properties (window blinds, microwave, gift chocolates, bedding, kitchen utensils, etc.) I would submit receipts to them and they would then reimburse me on the next paycheck. Now, I have gotten my 1099-MISC and those reimbursements were reported as income. Is this how it should be reported? These purchases were done under their direction, and I submitted documentation.

Since you were working as an independent contractor for a...

AnnetteB — Wed, 05 Jun 2019 01:51:30 GMT

Since you were working as an independent contractor for a company, it is proper for that company to include all the money they paid you on the Form 1099-MISC. That does not mean that you will be responsible for paying taxes on that total amount though.

When you work on your Schedule C to report your income and expenses as an independent contractor, you will report the full amount as income when you enter the Form 1099-MISC. Then, you will include the amounts that were reimbursed to you as an expense. That way, you will not be paying tax on the reimbursement because it will be subtracted from the income.

You could enter it in the Less Common Expenses section, using the Other Miscellaneous Expenses category. Doing so will allow you to enter your own description for the expense (such as reimbursement for supplies) so that you can categorize it any way that makes sense to you.

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If employer included reimbursements as income on 1099-MISC, how do I classify expenses such as microwave, bedding, or kitchen utensils that the employer told me to buy?

Since you were working as an independent contractor for a...