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I have a 1099-MISC from the gas company that tore up my yard and then paid me to pay the company that fixed it. It was a reimbursement, not income - how do I show that?

I need to somehow not claim that amount as income - it's hurting my return.

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Accepted Solutions
ToddL
New Member

I have a 1099-MISC from the gas company that tore up my yard and then paid me to pay the company that fixed it. It was a reimbursement, not income - how do I show that?

Go ahead and enter it in the 1099-MISC interview, making sure not to describe it as part of your main job, expected to happen again and obtained through an intent to make a profit.

It will end up on Line 21 of your Form 1040 (Other Income). 

In the Other reportable income interview, enter a negative amount equal to what you paid to repair the damage to your yard. Identify it as 1099-MISC Damages.

(This interview is under Federal Taxes > Wages and Income > Less Common Income > Miscellaneous Income).

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3 Replies
ToddL
New Member

I have a 1099-MISC from the gas company that tore up my yard and then paid me to pay the company that fixed it. It was a reimbursement, not income - how do I show that?

Go ahead and enter it in the 1099-MISC interview, making sure not to describe it as part of your main job, expected to happen again and obtained through an intent to make a profit.

It will end up on Line 21 of your Form 1040 (Other Income). 

In the Other reportable income interview, enter a negative amount equal to what you paid to repair the damage to your yard. Identify it as 1099-MISC Damages.

(This interview is under Federal Taxes > Wages and Income > Less Common Income > Miscellaneous Income).

I have a 1099-MISC from the gas company that tore up my yard and then paid me to pay the company that fixed it. It was a reimbursement, not income - how do I show that?

Where is the interview section you are talking about?  How do I get there?
ToddL
New Member

I have a 1099-MISC from the gas company that tore up my yard and then paid me to pay the company that fixed it. It was a reimbursement, not income - how do I show that?

For 1099-MISC,  Federal Taxes > Wages and Income > Other Common Income > Income from 1099-MISC.

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