Reimbursable expenses and sales tax included in totals on 1099 MISCform?

Discussion in 'Tax' started by 20vtguy, Jan 27, 2009.

  1. 20vtguy

    20vtguy Guest

    One of my clients sent me a 1099 MISC and it seems they included the
    totals of all the invoices as non-employee compensation total. They
    were parts that I purchased for them and they were noted as
    reimbursable expenses on the invoices. Also the sales tax on the
    invoice was included as well. Shouldn't they have deducted the amount
    of the expenses and the sales tax totals from the final non-employee
    compensation amount. I don't want the reimbursed expenses and the
    sales tax counted as income since of course they aren't. What the best
    way for me to handle this on my taxes? I

    Thanks in advance
    Adam

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    20vtguy, Jan 27, 2009
    #1
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  2. In article <>,
    20vtguy <> wrote:
    >One of my clients sent me a 1099 MISC and it seems they included the
    >totals of all the invoices as non-employee compensation total. They
    >were parts that I purchased for them and they were noted as
    >reimbursable expenses on the invoices. Also the sales tax on the
    >invoice was included as well. Shouldn't they have deducted the amount
    >of the expenses and the sales tax totals from the final non-employee
    >compensation amount. I don't want the reimbursed expenses and the
    >sales tax counted as income since of course they aren't. What the best
    >way for me to handle this on my taxes? I



    Not unusual.



    If you can't get them to correct the 1099, then report it as income
    and also expense it on your Sch C.
    --


    ArtKamlet at a o l dot c o m Columbus OH K2PZH

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Arthur Kamlet, Jan 27, 2009
    #2
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  3. 20vtguy

    Steve Pope Guest

    20vtguy <> wrote:

    >One of my clients sent me a 1099 MISC and it seems they included the
    >totals of all the invoices as non-employee compensation total. They
    >were parts that I purchased for them and they were noted as
    >reimbursable expenses on the invoices. Also the sales tax on the
    >invoice was included as well. Shouldn't they have deducted the amount
    >of the expenses and the sales tax totals from the final non-employee
    >compensation amount.


    Nope, they did the correct thing.

    >I don't want the reimbursed expenses and the
    >sales tax counted as income since of course they aren't. What the best
    >way for me to handle this on my taxes?


    "Taxes" on line 23, Schedule C.

    "Cost of goods sold" from Part III of Schedule C.

    Other expenses on Part II of Schedule C.

    The answers to all your questions in the instructions for
    Schedule C, in Pub. 334, and in various other publications
    that will be mentioned in these.

    There are a few "gotchas", but not many. One of these being
    that if they reimbursed you for the entire cost of certain
    meals, you may be only able to deduct half that cost. You
    will have to follow IRS rules for mileage as well.

    Good luck--

    Steve

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Steve Pope, Jan 27, 2009
    #3
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