Hal_Al, I have posted previously w/o help. I asked my question on the other thread in hopes of obtaining help. If you see this, my 1099 Misc Box 3 question is below.

[ronnieandjenny]

A college student attended a conference as a representative of the University to present papers. The student paid for all expenses up front $1,170.00. The University reimbursed the student $1,100.00 of the $1,170.00 (after receiving documentation of expenses), leaving the student holding $70.00 in expenses. The University then issued a 1099 Misc. Box 3 for the reimbursement. No profit. No income. The student didn't make money. The student not only didn't make money, the student took a $70.00 loss; however, the student is being taxed $170.00. The only way this would have been income, is if the student hadn't paid expenses to begin with.

[IsabellaG · Accepted solution]

I'm not Hal_Al, but if the school issued a 1099-Misc, then the student needs to report it, unless he wants to explain this to the IRS at a later date.

But he has corresponding deductions that are equal or greater than the amount of the 1099. The income will wind up on line 21 of his Form 1040.

You can create a negative entry on line 21 to zero out the Other Income that he's reporting.

• In the Wages and Income section, scroll down to Less Common Income.

• Select Miscellaneous Income (the last choice).

• On the screen Let's Work On Any Miscelllaneous Income, scroll down to Other Reportable Income (Again, the last choice.)

• Continue, and on the screen Other Taxable Income, enter a description, like "Conference Expenses" and a negative $1170. See the screenshot.

The result will be that the income is zeroed out, as it should be. See the screenshot for how that will look on the tax return.

He could still be questioned about this, but he's reported the income, and I assume that he has records to back up the corresponding deduction.

[ronnieandjenny]

Thank you so very much! That worked and handled the issue perfectly!

[IsabellaG]

I'm so glad I could help!