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.
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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
posted
February 19, 20253:35 PM
last updated
February 19, 20253:35 PM
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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.
You must enter the expenses on your Schedule C so that you are not taxed on the income for expenses reimbursements.
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