As a lawyer I incurred filing fees, 3d party research reports and other expenses directly on behalf of clients, all of which were reimbursed by the clients. These expenses were all included as "nonemployee compensation" on the 1099-Misc forms (box 7) prepared by my clients, which overstated my actual lawyer compensation by about $10,000. I was under the impression from another accountant that I could claim these client expenses as deductions on my tax return, thereby removing them from the reported compensation for me. I was unable to find the specific TurboTax step which seemed to apply to this. . . under "business income and expenses" or elsewhere. Please let me know where these expenses/deductions should be reported. Thank you!
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Business income and expenses >Business Expenses >Other common expenses >Other Miscellaneous Expenses. There you can describe your expenses and report amounts.
There are 17 unique categories for entering business expenses in the TurboTax Home and Business program for a Schedule C. If you have a particular expense that does not fit in the other 16 categories listed use Other Miscellaneous Expenses at the bottom of the list.
On the next screen, click on Edit for your business listed.
On the next screen scroll down to Business Expenses
On Other Common Business Expenses, click on the start or update button
Thanks for the tip! Looking forward to trying it manaña. MB
Thank you for the detailed advice! Looking forward to applying it manaña. MB
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