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Can I take the standard deduction on top of reimbursements?

The business that paid me included $9,495 of reimbursements in my total income (Box 7 on my 1099-MISC). Obviously, I bought these things for the business, provided receipts, and they paid me back.

 

I have a full record of everything the business reimbursed me. How, if possible, do I show that $9,495 of my income wasn't actually income, then take the standard deduction on top of that?

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Expert Alumni

Can I take the standard deduction on top of reimbursements?

Yes, you can deduct your business expenses on Schedule C and still take the standard deduction.  The total income in Box 7 will be reported as self-employment income and you can deduct the related expenses for your business.   The difference between your income and expense is your net self-employment income.   Your standard deduction (or itemized deductions) is subtracted after determining your business income on Schedule C.  

 

To enter your business expenses:

 

  1. Type Schedule C in the Search box.
  2. Select the Jump to link.
    • If this is your first time working in this section: You’ll be asked some questions about your self-employment work and income and then have a chance to enter your expenses.
    • If  you have already entered some information about your self-employment work:
      • Select Edit next to your business and confirm your general business info if asked.
      • Select Add expenses for this work.
  3. Select an expense type that you had.
  4. Enter your expense description and amount. (We may ask you some additional questions for certain types of expenses.)
  5. If you had more than one expense for a type, select Add another group to include them all.
  6. If you have additional expenses of other types, repeat steps 3 through 5 above to add more.
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Highlighted
Expert Alumni

Can I take the standard deduction on top of reimbursements?

Yes, you can deduct your business expenses on Schedule C and still take the standard deduction.  The total income in Box 7 will be reported as self-employment income and you can deduct the related expenses for your business.   The difference between your income and expense is your net self-employment income.   Your standard deduction (or itemized deductions) is subtracted after determining your business income on Schedule C.  

 

To enter your business expenses:

 

  1. Type Schedule C in the Search box.
  2. Select the Jump to link.
    • If this is your first time working in this section: You’ll be asked some questions about your self-employment work and income and then have a chance to enter your expenses.
    • If  you have already entered some information about your self-employment work:
      • Select Edit next to your business and confirm your general business info if asked.
      • Select Add expenses for this work.
  3. Select an expense type that you had.
  4. Enter your expense description and amount. (We may ask you some additional questions for certain types of expenses.)
  5. If you had more than one expense for a type, select Add another group to include them all.
  6. If you have additional expenses of other types, repeat steps 3 through 5 above to add more.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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