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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

 

 

View solution in original post

1 Reply
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

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