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climateofwine
New Member

1099-NEC reimbursed expenses

Hello,

A company invited me to give a talk and agreed to pay for travel expenses and provide an honorarium. On the 1099-NEC they included both the expenses and the honorarium. If I put this on my 1040 as income, then I will be taxed on the expenses twice. Should I ask the company to provide a 1099-NEC without the reimbursed expenses, or how do I account for them when I do my taxes?

Thank you

1 Best answer

Accepted Solutions
KathrynG3
Expert Alumni

1099-NEC reimbursed expenses

Yes, the details of your self-employed income & expenses section should accurately report this situation.

 

To start, you must report the full amount of Form 1099-NEC. (For example 100 honorarium + 10 travel) The IRS received a copy of Form 1099-NEC and will look to match this on your return.

 

Next, report the travel expenses as usual in full. TurboTax will subtract it for you from income. Do not otherwise adjust the travel for being paid privately and reimbursed. (as an expense, this would be -10, which is the same as -10 +10 -10)

 

The result would appropriately not allow for an expense that was reimbursed, but not "overcharge" for the additional income.

 

For more information, see: Tax Topics for Freelancers, Contractors, and Consultants

 

 

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3 Replies
KathrynG3
Expert Alumni

1099-NEC reimbursed expenses

Yes, the details of your self-employed income & expenses section should accurately report this situation.

 

To start, you must report the full amount of Form 1099-NEC. (For example 100 honorarium + 10 travel) The IRS received a copy of Form 1099-NEC and will look to match this on your return.

 

Next, report the travel expenses as usual in full. TurboTax will subtract it for you from income. Do not otherwise adjust the travel for being paid privately and reimbursed. (as an expense, this would be -10, which is the same as -10 +10 -10)

 

The result would appropriately not allow for an expense that was reimbursed, but not "overcharge" for the additional income.

 

For more information, see: Tax Topics for Freelancers, Contractors, and Consultants

 

 

View solution in original post

LaurieP13
New Member

1099-NEC reimbursed expenses

If you report the entire amount in Quickbooks as income and then list the travel expenses as an expense, is the taxable amount taken from the income reported amount to pay in my quarterly tax?  It seems like that is what it is doing.  I travel almost every week and am contracted - so income and travel expenses are put together. 

HELP!

VolvoGirl
Level 15

1099-NEC reimbursed expenses

It doesn't matter for the quarterly estimated payments.  Estimates are just to cover any tax due on your return.  If you pay in too much estimates you will get a refund.  The actual taxable income amount is based on your schedule C Net Profit after expenses.  

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