Working as a contractor for 3 months in 2016, I was reimbursed for mileage & client meeting costs by my Co.. Can I claim tax deductions? Do I need TurboTax Self Employed?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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I was doing sales & business development under an agency agreement with a company for 3 days/week, for about 3 months. As well as invoicing them a daily rate. I separately submitted expense reports for mileage at the $0.54/mile rate to and from meetings, software costs, nominal monthly rate of $50 for phone use etc. and received payment for this. I went on to be employed directly full-time and submitted for expenses in exactly the same manner.

- Should the expense reimbursements for the 3 months appear on the 1099 they send me in the same way as payments I received for work?

- Can I claim tax deductions on this these expenses or is that somehow "double claiming" because I have been paid for them as expenses?

- If I can claim deductions, total expenses as a contractor came to $851 for the year. Do I need TT Self-Employed and is it worth it for such small amount? (currently use TT Premier.)

- Do I have to declare expense reimbursements received once a full-time direct employee?

thanks.

TurboTax Premier Online

Carl11_2

Employee

Yes, you need TT Self Employed if using the Online version of the program. As for claiming your expenses, if your reimbursements are included as taxable income, then you can claim your expenses to offset the taxability of those reimbursed amounts.

If your reimbursements are NOT included as taxable income to you, then you can only claim the difference between what you were reimbursed, and what you actually paid. If the amount reimbursed equals or exceeds what you actually paid, then you can't claim any of it.

C

cbp13Author

Employee

Thanks Carl, I appreciate the advice. To be clear, if they do not include the expenses in taxable income on the 1099-MISC, and there is no difference between the amount reimbursed and what I paid in expenses, then do I still need TT Self Employed?

I was doing 3 days per week, for 3 months so the work place deduction will be tiny. Is there any other benefit or, more to the point a *requirement* to get TT Self Employed? Can I not declare 1099-MISC income without incurring the additional expense?