input expense for 1099-NEC without a schedule C

Forum|Forum|5 years ago
February 28, 2021
2 replies
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I received a 1099-NEC for reimbursement for a conference travel. In order to claim expenses, Turbo treated this as Business income on schedule C. Is there any other way to offset this income with expenses without a schedule C?

Best answer by ErnieS0

Yes. The IRS does not allow you to net the amount reported on Form 1099-NEC.

To deduct expenses, you must report the travel reimbursement as a “business.” If your actual expenses were less than or equal to your reimbursement then you will not have any additional income as a result of receiving the 1099-NEC.

LenaH

Community Manager

No. A 1099-NEC can be classified as Other Income or Self-employment income. If it is entered as Other Income, you will not be able to deduct any expenses that relate to your 1099-NEC income.

If you would like to enter this as Other Income, please follow the instructions below:

Open your return.
Search for 1099-NEC with the magnifying glass tool at the top of the page.
Click on the Jump to 1099-NEC link at the top of the search results.
Edit your 1099-NEC.
Continue past the information as shown on your form.
On the page Guess what? You can deduct expenses for the example work, answer No, I don't have expenses related to this income.
The amount from your 1099-NEC will flow to Other Income.

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blueskyus0Author

Level 3

But this is reimbursement for actual expenses occurred. It is reported in Box 1 (Non-employee compensation) of 1099-NEC. So I have to report this as business income and use Schedule C to offset this income, right?