All my income, including reimbursed expenses appear in Box 3 of 1099-MISC. Is it better to request a corrected 1099 from employer or simply deduct exp on Schedule C?

[wdrewmartin]

I was self-employed as a consultant for partial year.  I do not want my income to appear inflated because reimbursed expenses are included.  Plus I shouldn't be limited to 50% of these expenses as deductions (as I have read can be an issue).  Nearly 40% of the $37k income was expenses that were reimbursed.  I could easily ask the company to reissue the 1099 if that is best for me.

[MichaelMc]

The Form 1099-MISC, as issued, is information that you can easily work with. There is no reason to ask for a re-issued or corrected form.

Report the gross amount on the form as gross income on your Schedule C.

Then, report your various related expenses, by category. As has been the rule for many years, business meals are only deductible at 50%. Business entertainment (sports events, theatre, golf, etc.) are no longer deductible.

For more information, please refer to: IRS Pub. 535 Business Expenses