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Level 2
posted Feb 14, 2020 7:28:46 AM

I was compensated by my employer for travel and other misc expenses, which was not part of my W2 nor did I receive a 1099. How can I report this income?

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1 Best answer
Expert Alumni
Feb 14, 2020 10:58:11 AM

You will report the extra income on Form 1040 Schedule 1 Part 1 Line 8. 

9 Replies
Level 2
Feb 14, 2020 7:32:46 AM

The compensation was for moving expenses, miles driven, internet service costs and personal technology usage, which I dont believe are currently tax exempt, so I believe I need to report the compensation as additional income, just need to know how best to report it.

Expert Alumni
Feb 14, 2020 7:55:52 AM

It depends.

  • If the employer paid you through an accountable plan (see page 29 of IRS Publication 463), you do not need to report what was not already included in your W-2.
    • The reimbursing income you received would be offset by the expenses you incurred.
  • If the employer instead simply wrote you a check, and did not pay you through an accountable plan, this income is taxable. 
    • To declare this income, follow these steps:
      • From the left menu> select
      • Federal>Wages & Income>
      • At the bottom of the income already reported, click Add more income or scroll down
      • Less Common Income click Show More>
      • Miscellaneous Income, 1099-A, 1099-C click Start>
      • Other income not already reported on a Form W-2 or Form 1099 click Start
      • Click Yes>Continue>Continue>Yes>Employee compensation that was not reported on a W-2 click Continue
      • You will need to identify your employer, their EIN (found on your W-2), and your annual wages. The amount to enter for other income would be both your moving expenses and other expenses reimbursed by the employer. Then, click done. TurboTax will handle the rest.

[Edited 2/14/2020 | 12:38 PM PST]

@adrianfrankfurte 

Level 2
Feb 14, 2020 10:37:15 AM

Thanks Kathryn.  No there is no accountable plan, this was simply a check cut to me.  However, I was informed that moving expenses, etc are not tax exempt and that I would have to add this as part of my income, which I am ok with.  But need clarification.  

Expert Alumni
Feb 14, 2020 10:46:46 AM

Yes, you are correct moving expenses are no longer deductible on your tax return.   Any reimbursement you receive from your employer is considered as taxable income.   The moving expense deduction was suspended for tax years 2018 through 2025 by the Tax Cut and Jobs Act of 2017.

Level 2
Feb 14, 2020 10:49:15 AM

Thank you Leonard.  That's what I thought and was told.  Since this extra income was not reported on my W2 nor through a 1099, what would be the best place to indicate this on my taxes?  Thank you in advance!

Expert Alumni
Feb 14, 2020 10:58:11 AM

You will report the extra income on Form 1040 Schedule 1 Part 1 Line 8. 

Level 2
Feb 14, 2020 11:16:23 AM

Great, thanks.  One more question: Where on turbotax would this be under Income?

Expert Alumni
Feb 14, 2020 12:01:48 PM

Yes, that is correct, that type of income would go to line 8 of Schedule 1.

 

Here is how to enter it in Turbotax:

  1. Log in and continue your return.
  2. Click on Income & Expenses in the upper left corner.
  3. At the bottom of the list you will see, Less Common Income. If you don't see that at first, click on See a list of all income at the bottom of the list.
  4. Click Show more on the right.
  5. At the very bottom, click Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C.
  6. At the bottom of the next list, select Other reportable income.
  7. Answer the next question, Yes.
  8. Enter a description and the amount.

Level 2
Feb 14, 2020 12:53:08 PM

Thank you Julie.