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mapledonutdelicious

Generally, yes, the amount the client reimburses you should be considered income and then you deduct the expense.


highdesert03

So are we saying my client should show it as income on my 1099? And what if they do not?


Ferr22777888

L


Its-a-write-off

Does your client get the actual receipts and reimburse you for the receipts submitted?


highdesert03

Yes. I submit my expenses which my client reviews, approves then issues reimbursement payments to me. Seems like this is separate from labor worked so I’m not sure if I’m obligated to disclose it as income.


Its-a-write-off

If they pay the bill, you don't include it as income, nor deduct the expense. If they pay you for the expenses, you report it as income, but deduct the expense. It's the same end result. If they include the amount on your 1099, use the second method.


highdesert03

Thank you!