Question

Do I have to pay taxes on travel reimbursement paid to me by my employer?

Forum|Forum|7 years ago
June 6, 2019
1 reply
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I worked for an employer in 2017 who offered to pay for my travel, hotel and conference registration expenses to represent them as a conference speaker. I submitted my receipts back in June, and my employer reimbursed me in full.

Then I received a 1099-MISC for the $1,060 they reimbursed me. I may not be understanding this correctly, but why did I receive a 1099-MISC? Isn't that for income? This was not income; this was a travel reimbursement.

Did I understand this paperwork incorrectly last summer, or did they do the paperwork wrong?

Thank you

TurboTax Premier Online

T

ToddL

Employee

Yes, this was a reimbursement but the employer was justified in sending you a 1099-MISC.

To prevent you from getting taxed on the reimbursement, you will have to report the expenses that were reimbursed.

To report the "income":

Enter the 1099-Misc in the Other Common Income section (Enter "1099misc" in the Search Box and Select "Jump to 1099misc")
Indicate that it is a "Reimbursement TVL EXP", that it does not involve work like your main job, and that it did not involve an intent to make money, and is not a recurring payment (received in the past or expected in the future).
The income will be reported on line 21 of your return.

To enter the expenses that were reimbursed:

Go to Less Common Income, Miscellaneous Income and Other reportable income (enter "other reportable income" in the Search Box and Select "Jump to other reportable income")
Continue to the screen "Other Taxable Income". Enter the description as "TVL EXP" and the amount as a negative number. These are NOT wages.

A corresponding negative amount will be entered, and line 21 will be zero. See the attached screenshot example (different descriptions, but still offsetting).