I am a contract employee for a radiology group. All my work related expenses are reimbursed. For the last 3 years my 1099 has reflected only my annual salary and bonuses. I was just told today that this has not been handled correctly and that all my expenses will be included on my 1099. Is this correct, are my work related expenses condidered part of my salary?

Thank you,

Sheryl

Zip Code: sheryl13@comcast.net

If your reimbursed expenses are NOT included on your 1099, then you pay taxes on the amount reflected on the 1099.

If your expenses are included on the 1099, then you include the amount per the 1099 as income on the Schedule C, and then you deduct all of your reimbursed expenses against that income. So you should end up with the same reportable income.

Either way, you should be taxed only on the income you received during the year, and not on expenes that were reimbursed on your behalf.

Zip Code: cpa@mdtaxes.com

Thank you very much for your help.

Zip Code: sheryl13@comcast.net