Eli Posted February 17, 2010 Report Share Posted February 17, 2010 Taxpayer recieved a 1099 MISC from the Texas Highway Patrol for mileage reimbursement. They listed the amount in box 7 (nonemployee compensation). The taxpayer turned the check over to the the city manager since he is paid by the city. What would be the proper way to report the 1099 on his return? I was thinking of zeroing out the amount with mileage, but not sure that would be the correct thing to do. Thanks! Eli Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 17, 2010 Report Share Posted February 17, 2010 Well, the SIMPLE way would be to just put it in a C-EZ and enough milage to zero it out. Quote Link to comment Share on other sites More sharing options...
Eli Posted February 17, 2010 Author Report Share Posted February 17, 2010 Well, the SIMPLE way would be to just put it in a C-EZ and enough milage to zero it out. Thanks, KC!! Eli Quote Link to comment Share on other sites More sharing options...
michaelmars Posted February 17, 2010 Report Share Posted February 17, 2010 i would not put down mileage to zero it out, that is a deduction he can't substantiate and now you have to add a car etc. we have lots of these for doctors that get checks from insurance companies and owe it back to their employer. put on line 21 and then show the next line as paid back to employer under requirements of contract Quote Link to comment Share on other sites More sharing options...
Eli Posted February 17, 2010 Author Report Share Posted February 17, 2010 i would not put down mileage to zero it out, that is a deduction he can't substantiate and now you have to add a car etc. we have lots of these for doctors that get checks from insurance companies and owe it back to their employer. put on line 21 and then show the next line as paid back to employer under requirements of contract Thanks, Michael for another option :-) Eli Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 17, 2010 Report Share Posted February 17, 2010 I prefer KC's suggestion. He knows how much he got reimbursed if it was ever questioned and vehicle information is not required on a Schedule C-EZ. taxbilly Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 17, 2010 Report Share Posted February 17, 2010 The reason I said to put it as mileage is that that is what he got paid for. If audited, which is not likely on the amounts, an explanation of what the 1099 payment is for would be all it would take. He does not have to have records to support amounts reimbursed, as the IRS leaves the substantiation support up to the employer that reimbursed. You could, as MM suggested, just put it on an expense line with an explanation, but it was for mileage. Quote Link to comment Share on other sites More sharing options...
joelgilb Posted February 17, 2010 Report Share Posted February 17, 2010 both solutions work, but KC's solution does have a lower risk of IRS even questioning it. And if they do he can provide a full explanation. Quote Link to comment Share on other sites More sharing options...
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