I have a 1099misc with income in box 7 related to a reimbursement from Medicaid for travel expenses from taking my kid to the doctor. Is this income taxable? Fed? NYS?

[ryan_j_ferguson]

I have a 1099misc form from a company called Medical Answering Services. In box 7 they have listed $1,600 of nonemployee income. This is a reimbursement through Medicaid for mileage, hotel, and meal expenses related to doctor's appointments for my daughter who is disabled and has a Medicaid waiver. Is this taxable on Federal taxes? NYS?

[MarilynG · Accepted solution]

Yes, income received on a 1099-Misc is taxable income.  However, since the amount  reported in Box 7 indicates you are a contract employee, you will need to report $1600 income and $1600 travel expenses as Self Employment income and expense on a Schedule C. 

You will end up with no taxable income.

This will flow through to your NY return also.

Edited 2/10/18 11:04 AM

[ryan_j_ferguson]

Thanks so much of the answer!  I entered the 1099-MISC income in wages and income, but I am unsure of how to enter the expenses in Turbo Tax.  When I go to Deductions and Credits, nothing related to schedule C appears.  I have the Deluxe version of Turbo Tax right now... After entering the 1099-MISC it offered to let me enter expenses, but it says I will need to upgrade to the self-employed version of turbo tax.  Is there any way to get the income and related expenses entered without having to upgrade?