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Independent Contractor Questions

Two questions...I am an independent contractor as a referee for high school sports.  There are three of us that work a game...and the school just picks someone to pay the mileage to.  I don't like this plan, but that's what they do.  Sometimes, they pay mileage to referee #1 and referee #1 drives.  Sometimes, they pay mileage to referee#1, but referee #2 drives.

In case #2, let's say that I'm referee #1, and I did NOT drive...but I get paid mileage.  I get a 1099-MISC at the end of the year, and it includes all mileage paid throughout the year...and is then taxable.  How do I handle being paid mileage money when i didn't drive? 

Also, for when I am paid mileage...and I DO drive...our group's policy is that I give the "riders" some of the mileage money for "windshield time".  How do I deduct this payment to others that are in my car?

Thanks!

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2 Replies
Hal_Al
Level 15

Independent Contractor Questions

You enter your 1099 (1099-MISC or 1099-NEC), exactly as received.  You do a manual calculation for all that other rigmarole and enter a deduction for "other expenses" or enter as other income, depending on whether you came out ahead or behind. 

DMarkM1
Expert Alumni

Independent Contractor Questions

As Hal_Al mentions, the person who received the 1099-Misc enters it as received and then enters an expenses for the portion of that paid out to the others.  

 

There is an expense item in TurboTax that fits for this expense.  In the the expense list in TurboTax you will find an item labeled "Contract Labor".  

 

The referees who do not receive the 1099-Misc for travel expenses are subcontractors to the referee who received the 1099-Misc.  All three referees enter the mileage expenses for their referee self-employment business.  

 

In your case #2 you will enter the 1099-Misc as income in your referee business.   There you will enter as expenses the portion of the travel reimbursement (1099-Misc) that you paid to each of the other referees (one row for each). 

 

Each of the other referees enter the amounts they received as cash income in their referee businesses.  

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