I work for one company that does only dining shops, and pays only reimbursements. Yet they sent me a 1099! It's my understanding that reimbursements of required purchases are NOT income. But this 1099 lists them as such.

Has anyone else had this happen? How do you deal with it? I really don't want to do a Schedule C for just this one company if I don't have to do so.


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All you do is list the amount of the reimbursements on Schedule C as income and the same amount as a cost of doing business. I think that can be done on the "simple" Schedule C, so it's no big deal, really. If you got a 1099, you had better file the Schedule, IMHO. Saves problems if any other item were to cause questions.

Some MSCs include reimbursements on 1099s; some do not. That's why we have to keep good records.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.
They were due to be submitted by the companies to IRS by 1/31 and mailed. You should be receiving them within the next few days. I think I have all I am expecting to receive this time.
I moved last week so that prob is also delaying them. winking smiley

Edited 1 time(s). Last edit at 02/03/2016 05:41PM by sbobgal.
If I have to go to the bother of submitting a Schedule C, I'm going to go find not only my meal costs, which are nearly always more than the reimbursement, but my mileage as well! Might as well show the real loss I take to offset other income.
The question with meal costs is generally whether you COULD have stayed within the reimbursements rather than whether or not you DID. It would be very easy at the grocery store or at virtually any restaurant shop to spend well above the amount reimbursed. If I can make the required purchases and stay within the reimbursement then whatever else I spend is not a necessary business expense. "One appetizer OR dessert, two different entrees, two beverages," is not requiring more than the least expensive way to fulfill the requirements.
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