Solved: Should expense reimbursements paid to board of directors included into their 1099 MISC box 7?
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Should expense reimbursements paid to board of directors included into their 1099 MISC box 7?

 
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Should expense reimbursements paid to board of directors included into their 1099 MISC box 7?

If the expenses are reimbursed under a non-accountable plan, where you do not have to submit receipts and prove your expenses, then yes.

If the expenses are reimbursed under an accountable plan, where the board member must submit receipts and prove actual business expenses and are only reimbursed for approved expenses, then no.  Such reimbursements are not taxable income. (A per diem can fall under an accountable plan as long as the member is required to submit receipts in a timely manner and is required to repay any per diem in excess of actual expenses.)

*Answers are correct to the best of my ability but do not constitute legal or tax advice.*
**If a post answers your question, choose it by clicking on "Mark as Best Answer".**

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Level 15

Should expense reimbursements paid to board of directors included into their 1099 MISC box 7?

If the expenses are reimbursed under a non-accountable plan, where you do not have to submit receipts and prove your expenses, then yes.

If the expenses are reimbursed under an accountable plan, where the board member must submit receipts and prove actual business expenses and are only reimbursed for approved expenses, then no.  Such reimbursements are not taxable income. (A per diem can fall under an accountable plan as long as the member is required to submit receipts in a timely manner and is required to repay any per diem in excess of actual expenses.)

*Answers are correct to the best of my ability but do not constitute legal or tax advice.*
**If a post answers your question, choose it by clicking on "Mark as Best Answer".**

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Should expense reimbursements paid to board of directors included into their 1099 MISC box 7?

Thank you so much for this info. It really helps clear out my confusion on this question. Is it possible if you would be able to help me answer one other question? We also pay board of directors B&O tax for their compensation. Is this B&O tax payment included in their 1099 MISC?
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Level 15

Should expense reimbursements paid to board of directors included into their 1099 MISC box 7?

If you are talking about Washington state's B&O tax, then yes.  (And generally for any other tax.)  If you "gross up" someone's compensation to help them pay the taxes on that compensation, the grossed-up amount is part of their taxable wages.
*Answers are correct to the best of my ability but do not constitute legal or tax advice.*
**If a post answers your question, choose it by clicking on "Mark as Best Answer".**
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Should expense reimbursements paid to board of directors included into their 1099 MISC box 7?

Thank you again. I appreciate the info very helpful.
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