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Reimbursing a Hotel Guest for Medical Expenses and Lost Wages: 1099 Requirements
February 5, 2025
Q. We reimbursed a hotel guest due to a fall or medical expenses and lost wages. Does this payment require a 1099? My research is showing that the medical reimbursement is not taxable for the lost wages.
A.
(Answered by IOFM's third-party tax advisor)
At first glance, this analysis seems correct, as medical damages are not taxable to the recipient but lost wages are.However, the exemption to taxability of medical damages (and thus the exemption from 1099 reporting of such damages) is defined…
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