Why does our 1099-MISC keep going to self employment and showing up twice in turbotax?

[jswehrmann]

We have a 1099-MISC for a truck payment. Although this is for my husband's job, it's not payment for work. It covers the truck payment. Turbotax keeps double counting it, which increases our taxes.

[ColeenD3]

Who is issuing the 1099? If someone else is making the truck payment for him, then this is SE income.

[jswehrmann]

His employer is issuing the 1099 MISC. Does this make sense that turbotax would include it twice in our taxes, under 1099-MISC and under self employment?

[JamesG1]

This income may indeed be subject to Federal income tax as well as self-employment tax.  Is that what you mean when you say 'would include it twice in our taxes'?  Please clarify.

Perhaps this was an attempt to reimburse your spouse outside of an employer accountable plan.  An accountable plan is a plan that follows the Internal Revenue Service (IRS) regulations for reimbursing workers for business expenses in which reimbursement is not counted as income. This means that reimbursements are not subject to withholding taxes or W-2 reporting.

I agree with @ColeenD3 that this rightly sounds like income that should have been reported as income on your spouse's W-2 or subject to income tax and self-employment tax if reported on an IRS Form 1099-MISC.

[jswehrmann]

@JamesG1 this makes sense. This is not income, it was to cover truck payment. My husband’s employer was advised by his tax advisor to process a 1099-misc for the truck payment. The truck is used by my husband for work.