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Returning Member
posted Jun 4, 2019 12:49:07 PM

Are reimbursements for travel expenses included on a 1099 MISC to independent contractors in addition to their fees?

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4 Replies
Level 15
Jun 4, 2019 12:49:09 PM

You would have to ask the issuer of the 1099-MISC that one. There's no way anyone else can know with any degree of certainty, what was included in the amount the payer reported to have paid you. But overall, I would fully expect it to be, since anyone issuing you a 1099-MISC is going to report all money they paid you, regardless of why they paid it to you.

Returning Member
Jun 4, 2019 12:49:10 PM

Thank you for your reply. Here is what I found out from the instructions for the IRS Form 1099.  If one is paid more than $600 in a year from a company, that company should issue you and the IRS a Form 1099, which will include all payments to you, including reimbursement. However, you can use any work-related expenses that one paid, reimbursed or not, as a tax deduction which will lower ones income.

New Member
Jun 4, 2019 12:49:11 PM

That's right. Nice catch. Go ahead and use the "Other common Business Expenses" section as in the answer and screenshot. Anything else, let us know. Good luck!

New Member
Jun 4, 2019 12:49:13 PM

Yes. The contractor can then deduct their expenses on the Schedule C. 

If you are the contractor, report your income and expenses for Schedule C from the Business tab under Business Income & Expenses.

To deduct your travel expenses, see the Other Common Business Expenses section. (See the attached screenshot below. Click to enlarge.)