I unexpectedly received a 1099-NEC for funds received as reimbursement of travel expenses for a job interview. Is this taxable income?

[JohnB5677]

Yes, this is taxable income.

The Tax Cuts and Jobs Act suspended the deduction for job search expenses for most taxpayers for tax years beginning after December 31, 2017, through January 1, 2026. 

What if I am searching for a job?

[dlyle]

Thank you @JohnB5677! Follow up question. Since I am not self-employed, would this then be considered as 'not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby'? Or would this still somehow be considered as business income? 

[AliciaP1]

Yes, you would consider this as income from a "sporadic activity or hobby".

To enter your 1099-NEC as hobby income in TurboTax Online please follow these steps:

1. Go to the Income & Expenses section of your tax return
2. Click Edit/Add for your form 1099-NEC
3. Input the details of your 1099-NEC and click Continue
4. Answer the questions and Continue until you get to the Does one of these uncommon situations apply? page
5. Choose This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common) and click Continue

@dlyle 

[dlyle]

Another question on this subject. Since the income included travel across state lines, is the income taxable in my state of residence or the state where the interview took place? If in the state where the interview took place (Indiana), do I need to file a return in that state? 

[AmyC]

No, you would not need to file an IN return. You earned the money as a resident of where you are - which is why they had to pay travel expenses to go to IN.