Advance Deposit

Forum|Forum|2 years ago
April 2, 2024
1 reply
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I received an advance from my client for traveling expenses. and I bill my client each month for traveling expenses. It is subject to refund upon conclusion of my consulting engagement. The client issued a 1099-NEC to me. Should it be reported as taxable income?

Thanks!

Tom

TurboTax Home & Biz Windows

PatriciaV

Employee

Yes, you should report the income from Form 1099-NEC. But also report the related travel expenses. The two entries should offset, but the IRS will look for that 1099-NEC income on your return.

Note that if you haven't billed for the total amount on 1099-NEC, you still report the entire amount. Next year you'll have more expenses than income for this activity.

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