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john--
New Member

I have a 1099 MISC for reimbursement, not income, not self-employed. How can I report this correctly?

 
1 Reply
NicoleU
New Member

I have a 1099 MISC for reimbursement, not income, not self-employed. How can I report this correctly?

If you are an employee, then your employer should have treated these reimbursements differently.

Per the IRS, and this is for employers to follow, "Do not use Form 1099-MISC to report employee business expense reimbursements. Report payments made to employees under a nonaccountable plan as wages on Form W-2. Generally, payments made to employees under an accountable plan are not reportable on Form W-2, except in certain cases when you pay a per diem or mileage allowance" You may need to obtain a corrected Form W-2 from your employer.

However if you were self-employed or independent contractor, which would be reported under box 7, then per the IRS" 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 fee and reimbursement total at least $600." If it is box 7, then the IRS will expect you to report this amount on Schedule C Profit or Loss From Business. Then you may be able to deduct any expenses related to this income.

For more information, please see the following IRS link: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf


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