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.
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