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Question about the 1099MISC form?
I was an independent contractor this year. I'm trying to figure out whether box 7 (the non-employee compensation) includes or excludes the reimbursement of my expenses. The company that I work for reimburses me for mileage and materials. There's no separate box on the form to let me know, nor is there anything on my e-file form to indicate this.
A little help? Do I just put down what is in that box? Do I seriously have to pay taxes on reimbursement (which I already paid sales taxes on and I didn't actually earn)?
My records DO show what I billed them. It's on every single invoice I sent to them. It's just not reflected on the 1099 MISC and there's no place to enter expenses in that section of my e-File. Do I need to enter it under self-employment? Won't that cause me to be double-billed?
2 Answers
- Anonymous1 decade agoFavorite Answer
*Your* records should show what you billed them.
Most payers do not have accountable plans and include the expenses in the box 7. They shift the record keeping burden to you (it's a 7 year requirement). No records, no deduction.
- 5 years ago
Be sure and report this as line 21 income on your tax return. It might also be a good idea to communicate with the issuers of the 1099Misc and ask them for a corrected one showing the income as "other" and pointing out to them that it is not self-employment income. You will probably have a few exchanges with various parties over this misclassification but don't lay down and play dead; we are surrounded by idiots and now they have computers and don't know how to use them either.