I received a 1099-MISC for reimbursement for travel expenses ONLY from a third party, not self-employed

[Bregma]

I was a guest speaker in another jurisdiction.  I received a 1099-MISC from that jurisdiction with my reimbursed travel expenses listed in Box 7.  I am not self-employed and did not receive any income from that jurisdiction (e.g. no honorarium or stipend for speaking).  My expenses were fully accounted for with receipts and GSA Per Diem rates.  

1. Was this sent to me by mistake?  If not (or if that jurisdiction says "too bad")...

2. How do I enter this to avoid being taxed or having to pay extra for Self Employed version of TT?

3. Anything else I should do?

 Thanks!

[DawnC]

Organizations can either have an accountable or non-accountable expense reimbursement plan. An accountable plan means the organization follows the IRS rules for reimbursements, and there would be no need to issue you a 1099-MISC.  You can see if you can get a corrected form if this is the case, but if the plan is not accountable or if they say 'too bad', you can still avoid paying tax on the income.  

You can enter the income on Schedule C and deduct the expenses which will result in no income and no tax.  The IRS would expect it to be on Schedule C since the income is in box 7.  

How do I report income from self-employment?

Keep detailed records in the unlikely event there is an inquiry.  

[Bregma]

Dawn, 

Thank you.  Using TT, this would necessitate paying extra for the SE version in order to complete the Schedule C, correct?

[JamesG1]

You would need a version higher than Basic. 

Please see the comparison of TurboTax products here.  Go down to the matrix.

Find Schedule C under the first column titled Commonly Filed Tax Forms and Schedules.

[DawnC]

If you use TurboTax Online to complete your tax returns, then yes, you are correct; you would need TurboTax Self-Employed to complete the Schedule C.

However, if you use the desktop software, you can get away with using Basic or Deluxe (if you need to file a state return also-a state return is included).  All of the desktop products have the Schedule C.  The difference is that you are not provided step by step instructions for completing the form if you use the lower-level versions.  

Your Schedule C would be relatively simple as you only have the one piece of income and your travel expenses, so you could skip the upgrade offer when it pops up and just enter the same info that you would need to enter into Self-Employed or Home & Business through the Basic or Deluxe version. 

It all depends on how comfortable you feel with the program and also how you currently file.  It may be more convenient to stick with the Online software if that is what you normally use. 

@Bregma