self-employed contractor 1099

[jaussie]

I am self-employed as 1099 contractor in biotech, part of my work involves business travel; I pay the expenses myself and then am paid back by my company; my understanding is that my 1099 should not reflect the travel expenses, just my wages 

[Loretta P]

Hello @jaussie,

It depends on if the company included it in your 1099-NEC or not.  If the company did not include it then there is nothing to deduct on your return.  If the company included the amount they reimbursed you in the 1099-NEC amount then you need to save your receipts and deduct the expenses on your return.  Companies are required to report all the funds they issue to their contractors.

You would not be subject to the 50% meals limitation if you meet the following exceptions:

• You incurred these expenses as an independent contractor.

• Your customer/client reimburses you or gives you an allowance for these expenses in connection with services you perform.

• You provide adequate records of these expenses to your customer or client.

If you meet the exceptions you would be able to deduct 100% of the meals expense that was included in your 1099-NEC.

Helpful Links:

What types of meal and entertainment expenses are 100% deductible on a business return?