Why are expense reimbursements by a client subject to taxes due to the reimbursement being reported on 1099-NEC. I paid these on client's behalf with personal funds.

i.e. this is expense report income, not self employment income

306

Expert Alumni

Feb 19, 2025 3:50:16 PM

You must enter the expenses on your Schedule C so that you are not taxed on the income for expenses reimbursements.