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I recieved a 1099-misc for reimbersment for food and milage that I initially paid for out of pocket. How do I dispute this?

 
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New Member

I recieved a 1099-misc for reimbersment for food and milage that I initially paid for out of pocket. How do I dispute this?

Employee reimbursements under non-accountable plan should be reported as wages on a W-2.

This answer then assumes that you are an independent contractor. You're probably right that the payer should not have reported this, if you did not account to them with receipts, etc.

According to the IRS,  

"The following are some examples of payments to be reported in box 7 ... A fee paid to a nonemployee, including an independent contractor, or travel reimbursement for which the nonemployee did not account to the payer"

"If the contractor adequately accounts to you for reimbursed amounts, you do not have to report the amounts on an information return."

However, you can use the business expenses you paid to offset the income received by the 1099-MISC. Enter all expenses you paid regardless of reimbursement. It would be good if you had copies of the receipts for your own documentation. 

Did this 1099-MISC have the reimbursement in Box 7?

To enter your business expenses:

·         Type “Schedule C” in the Search box.

·         Select the “Jump to” link.

·         Select Add expenses for this work (or Edit and navigate down to Business Expenses).

Remember to enter 1099-MISC, 1099-K, cash, and personal check income from your self-employment before you associate any expenses with your business.

If the reimbursement was on some other box of the 1099-MISC (possible box 3),  your travel expenses and other work-related expenses will be reported on Form 2106 and carried automatically to other Itemized Deductions (mortgage interest, property taxes, state income tax, donations, etc.) on Schedule A.

This is distinct from being an independent contractor consultant paid on a 1099-MISC and filing a Schedule C for Self-Employment mentioned above

Job-related expenses are reported on Form 2106 (Employee Business Expenses).

1.       Open (continue) your return in TurboTax.

(To do this, sign in to TurboTax and click the orange Take me to my return button.)

2.       In the search box, search for 2106 and then click the "Jump to" link in the search results.

3.       At the Tell us about the occupation you have expenses for screen, enter your occupation.

4.       Click Continue and follow the onscreen instructions.  

If you land on the Job-Related Expenses Summary screen instead, you can either Edit expenses for an existing job or click Add Another Occupation to enter expenses for a new one.

 Here are some other employment related costs that may be helpful investigating:

·         Home office costs. The office must be your principal place of business and be for the convenience of your employer—not just helpful in conducting your job.

·         Job search expenses in your current occupation, even if you don’t land a new job. This includes everything from the cost of producing and copying your resume to travel expenses you incur while interviewing or searching for a job.

·         Legal fees related to doing or keeping your job.

·         The cost of a passport for a business trip.

·         Union dues and expenses. However, you cannot deduct the portion of the fees that pays for sick, accident or death benefits or for a pension fund, even if the fees are required dues.

·         Work clothes and uniforms that are not suitable for everyday use and are a condition of your employment.

·         Tools (including the business use of your cell phone and internet)

·         Dues or subscriptions to professional societies

·         Licenses

·         Travel and meals for business, including DOT per diem

·         Excess educator expenses

·         Education that either maintains or improves job skills or is required to keep your salary or job.

 

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New Member

I recieved a 1099-misc for reimbersment for food and milage that I initially paid for out of pocket. How do I dispute this?

Employee reimbursements under non-accountable plan should be reported as wages on a W-2.

This answer then assumes that you are an independent contractor. You're probably right that the payer should not have reported this, if you did not account to them with receipts, etc.

According to the IRS,  

"The following are some examples of payments to be reported in box 7 ... A fee paid to a nonemployee, including an independent contractor, or travel reimbursement for which the nonemployee did not account to the payer"

"If the contractor adequately accounts to you for reimbursed amounts, you do not have to report the amounts on an information return."

However, you can use the business expenses you paid to offset the income received by the 1099-MISC. Enter all expenses you paid regardless of reimbursement. It would be good if you had copies of the receipts for your own documentation. 

Did this 1099-MISC have the reimbursement in Box 7?

To enter your business expenses:

·         Type “Schedule C” in the Search box.

·         Select the “Jump to” link.

·         Select Add expenses for this work (or Edit and navigate down to Business Expenses).

Remember to enter 1099-MISC, 1099-K, cash, and personal check income from your self-employment before you associate any expenses with your business.

If the reimbursement was on some other box of the 1099-MISC (possible box 3),  your travel expenses and other work-related expenses will be reported on Form 2106 and carried automatically to other Itemized Deductions (mortgage interest, property taxes, state income tax, donations, etc.) on Schedule A.

This is distinct from being an independent contractor consultant paid on a 1099-MISC and filing a Schedule C for Self-Employment mentioned above

Job-related expenses are reported on Form 2106 (Employee Business Expenses).

1.       Open (continue) your return in TurboTax.

(To do this, sign in to TurboTax and click the orange Take me to my return button.)

2.       In the search box, search for 2106 and then click the "Jump to" link in the search results.

3.       At the Tell us about the occupation you have expenses for screen, enter your occupation.

4.       Click Continue and follow the onscreen instructions.  

If you land on the Job-Related Expenses Summary screen instead, you can either Edit expenses for an existing job or click Add Another Occupation to enter expenses for a new one.

 Here are some other employment related costs that may be helpful investigating:

·         Home office costs. The office must be your principal place of business and be for the convenience of your employer—not just helpful in conducting your job.

·         Job search expenses in your current occupation, even if you don’t land a new job. This includes everything from the cost of producing and copying your resume to travel expenses you incur while interviewing or searching for a job.

·         Legal fees related to doing or keeping your job.

·         The cost of a passport for a business trip.

·         Union dues and expenses. However, you cannot deduct the portion of the fees that pays for sick, accident or death benefits or for a pension fund, even if the fees are required dues.

·         Work clothes and uniforms that are not suitable for everyday use and are a condition of your employment.

·         Tools (including the business use of your cell phone and internet)

·         Dues or subscriptions to professional societies

·         Licenses

·         Travel and meals for business, including DOT per diem

·         Excess educator expenses

·         Education that either maintains or improves job skills or is required to keep your salary or job.

 

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