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Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 9 years ago

should nonemployee travel reimbursement count as nonemployee income on 1099-misc?

6 Answers

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  • Jss
    Lv 7
    9 years ago
    Favorite Answer

    Yes, normally the employer will report it on your 1099-misc. You will claim it on schedule C or C-EZ.

    1099-misc (nonemployee compensation) income: You are independent contractor. You must file your tax return if your self employed income is $400 or more. You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). For this you will use schedule SE (Form 1040).

    Even though schedule C treats you as a self employed, which may not be correct for you, this is how you report this income.

    With 1099-misc you will end up paying about 7.2% more taxes as compared to W-2 employee. The benefit is that with 1099-misc you can deduct your business related expenses on schedule C or C-EZ whereas a W-2 employee you can deduct it only as itemized deduction subject to 2% AGI limit.

    Source(s): Self employed, independent contractor or sole proprietor http://taxipay.blogspot.com/2008/04/tax-filing-by-...
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  • staib
    Lv 4
    4 years ago

    1099 Expense Reimbursement

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  • Anonymous
    9 years ago

    Your client chose not to have an accountable plan. Therefore this is income to you.

    You in turn, deduct the expenses on your schedule C. You lose 50% of any meal reimbursement and must keep the receipts/records for at least 6 years.

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  • 4 years ago

    It receives suggested on both agenda C or agenda C-EZ, relying on what prices you're claiming. For federal earnings tax applications, all 1099-MISC non-worker compensation is dealt with as "agency earnings", no matter if you "have a agency institution".

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  • 9 years ago

    Your client should report the gross amount they paid to you. You then claim your eligible travel expenses as business expenses on your Schedule C. Claiming the expenses will decrease your net income from self employment, and your overall tax liability.

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  • Anonymous
    9 years ago

    Yes it should. In turn you will deduct the travel expense on Schedule C.

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