Reimbursed Totals included on 1099's

[Regal23]

I have a number of 1099's and some income to report that was not included on a 1099. For mystery shopping type work where the total amount paid out (including the reimbursed costs for food etc.) is included in the total paid amount on a 1099, where should the reimbursed amounts be entered? Home and Business Desktop

[AnnetteB6]

All of the income reported on the Form 1099-MISC for reimbursements should be reported as income on your Schedule C for the mystery shopping work.  Additionally, the other income you mentioned will also be reported as Schedule C income.  

Then, you would enter the amounts that you spent as business expenses.  That way, the reimbursement is not being taxed, but it is being reported on your return.  

You will find the Schedule C section under the Business tab at the top of the screen using the Home and Business desktop version of TurboTax.

[Regal23]

Does it matter where it's entered as a business expense?

[AnnetteB6]

Yes, especially for mystery shopping trips involving meals.  Do not enter those as a meal expense under Schedule C because they will only be deducted up to 50%.  

The best place would be under Miscellaneous Expenses where you can enter your own description and amount.  You could enter something like 'out of pocket mystery shop expense' and the amount.  Be sure to keep detailed records for your own information to track the total amount that you enter.

@Regal23