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February 19, 2025
Question

Why are expense reimbursements by a client subject to taxes due to the reimbursement being reported on 1099-NEC. I paid these on client's behalf with personal funds.

  • February 19, 2025
  • 1 reply
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i.e. this is expense report income, not self employment income

    1 reply

    February 19, 2025

    You must enter the expenses on your Schedule C so that you are not taxed on the income for expenses reimbursements.