Question

Can I exclude reimbursed expenses from my 1099-NEC income?

Forum|Forum|4 years ago
February 14, 2022
3 replies
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My employer reimburses me for supplies but includes that money in my paycheck. Can I remove those payments from my 1099-NEC income?

TurboTax Self Employed Online

M

MAK70

No, if your employer reimbursed you for expenses even if they are included on your W2 you should not be using or deducting such supplies for your self-employment income.

A

alisrose1Author

To be clear, the payment for the reimbursed supplies is not on a W-2, it's on a 1099-NEC. Why do I have to pay taxes on something that is not income?

DawnC

Because they did not include the reimbursement on your W-2. If you have an employer who issues you a W-2, they should have put all of your income on the W-2. Form 1099-NEC is generally self-employment income that gets reported a Schedule C.

If all of your income in on Form 1099-NEC, report all of your income on on Schedule C and deduct and business expenses from that income. You will pay self-employment tax on the NET income, after expenses. If those supplies were used while producing your self-employment income, those are deductible expenses.

How is being self-employed different from being an employee?

If you're self-employed, you get to claim expenses related to your work. Common expenses for the self-employed include: