Question
Do I need to report a 1099-MISC that I received when the reimbursement program had written that the reimbursement is not 1099 reportable?
I reside in the area where the Hyperion Sewage spill in Southbay occurred last year. During that time the City of Los Angeles started a program to reimburse people living in the area with up to $1200 for air purifiers, or people staying at hotels.
The documentation within their program had the following:
"Why do you need an IRS Form W-9?
The City requires this in order to process reimbursements. However, the reimbursement is not 1099 reportable."
Now come today, I received a 1099-MISC for this reimbursement and am now confused if I'm supposed to report it, and if so if I'm supposed to pay the taxes associated with it. This looks like it would overall add an additional $470 in taxes (Fed/State) and in my eyes, it's ridiculous that I would need to pay additional taxes on it as I had spent $1250~ish for the stuff after taxes and such and was only reimbursed for the $1200.
The document only has Box 3 - Other Income filled out with a value of $1,200. Doesn't look like anything else is filled out.
Any guidance regarding this topic will be greatly appreciated.
The documentation within their program had the following:
"Why do you need an IRS Form W-9?
The City requires this in order to process reimbursements. However, the reimbursement is not 1099 reportable."
Now come today, I received a 1099-MISC for this reimbursement and am now confused if I'm supposed to report it, and if so if I'm supposed to pay the taxes associated with it. This looks like it would overall add an additional $470 in taxes (Fed/State) and in my eyes, it's ridiculous that I would need to pay additional taxes on it as I had spent $1250~ish for the stuff after taxes and such and was only reimbursed for the $1200.
The document only has Box 3 - Other Income filled out with a value of $1,200. Doesn't look like anything else is filled out.
Any guidance regarding this topic will be greatly appreciated.
