Question

Revenue Vs. Business Expenses on 1099?

Forum|Forum|5 years ago
February 25, 2021
1 reply
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I'm working on a grant that is asking me for monthly revenue from my 2019 taxes. In getting clarity on my 1099 I was given as an independent contractor, I know they put $350 as revenue that was actually money they put on a paypal card for me to use to spend on their printing expenses. None of it was my money or my business expense. However I've read mixed answers on this issue on another post. Because I want to be thoroughly honest in reporting my revenue and for it to match my 1099, is it actually a tax law that a business would declare money they gave an independent contract on their business' paypal debit card for their printing expenses as money that was given to me as revenue or was that a mistake?

Thank you

Not A Product Question

ColeenD3

This is not part of your gross profit. While they may have found it easier to charge it off to you since they physically paid you, there should be only the amount you earned on your 1099-NEC. You can easily charge it off by deducting it as an expense, it puts the burden on you to validate the expense. In an ideal world, they should not have done this and they would issue you a corrected form, but if you do not want to go through the ordeal, you can deduct it.

Speak to them about having a more accurate accounting for 2021.