topic Thanks again in Retirement tax questions

I received a 1099-MISC for reimbursement of travel expenses. How does this get reported? Does Social Security tax need to be paid on this?

CT-resident — Thu, 06 Jun 2019 12:34:06 GMT

Reimbursement from whom? -Your regular W-2 employer? If s...

Hal_Al — Thu, 06 Jun 2019 12:34:08 GMT

Reimbursement from whom?
-Your regular W-2 employer? If so, why was it don this way?
-a contract job?
-something else?
What box on the 1099-misc. is the $ amount in?

Reimbursement from a client. Working as an independent c...

CT-resident — Thu, 06 Jun 2019 12:34:09 GMT

Reimbursement from a client. Working as an independent contractor. $ are in Box 7. One client sent 2 1099's - one for compensation and one for expenses. Another client rolled them into one 1099.

Then, it is normal business income. Your show it as gross...

Hal_Al — Thu, 06 Jun 2019 12:34:10 GMT

Then, it is normal business income. Your show it as gross revenue on schedule C and then deduct the expenses. The net effect on your tax return should be zero unless expenses exceed reimbursement or vice versa.

Thanks. Then, to be clear, I pay self-employment tax (Soc...

CT-resident — Thu, 06 Jun 2019 12:34:12 GMT

Thanks. Then, to be clear, I pay self-employment tax (Social Security) only on the profit? Not on the gross Box 7 amount?

That's correct.

Hal_Al — Thu, 06 Jun 2019 12:34:12 GMT

That's correct.

Thanks again

CT-resident — Thu, 06 Jun 2019 12:34:14 GMT

Thanks again