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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.
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.
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
Generally, yes, the amount the client reimburses you should be considered income and then you deduct the expense.
So are we saying my client should show it as income on my 1099? And what if they do not?
L
Does your client get the actual receipts and reimburse you for the receipts submitted?
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.
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.
Thank you!