I was invited to participate in a meeting at a college that was funded by a grant. The grant provided funds to reimburse attendees for their travel expenses, and following accountable plan rules, I provided receipts and documentation and received reimbursement for my travel expenses. Now, they've issued me a 1099 NEC for that reimbursement, which is not only showing up as taxable federal income, but now it's creating a tax liability for me in a state where I don't live or work. I know I could expense it out, but it's creating a huge hassle and extra paperwork. Everything I've read suggests this was an error, because I was NOT serving as a employee or providing any service to the college during the meeting – I was just a participant – but they have denied my request to withdraw the 1099 NEC or issue a corrected one with $0. Does anyone have any examples or guidance documents I can provide them to help with this?
Posted by Dry_Hat9275
3 Comments
A 1099-NEC (along with all the other informational forms) simply indicates that something was reported to the IRS. It does not mean the reporting is correct nor that you are obligated to report it the same way on your tax return.
If you disagree with how the payment is being characterized with the payer and they won’t issue a corrected one, report it as you see fit on your tax return. If the IRS asks questions, you can provide the paperwork to them at that time and they will make a determination.
I’m no tax expert but I am a truck driver and as such I know that one I have to pay for tolls or scale tickets or anything else that has to do with my job and I turn those receipts in The company reimburses me 100% as a non-taxable reimbursement now since you attended an event and didn’t work for them and they reimbursed you for your expenses to be there something tells me that technically that would be a taxable event because you’re not an employee and you weren’t there an official work-related event so it probably should be a taxable payment to you I’m sure it’s going to amount to pennies or a couple of bucks so don’t sweat it
This happened to me as well. My advisor told me to include my travel expenses on Schedule C to offset it. Keep your receipts in case the IRS comes knocking.