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Reportability of a reimbursement for damages
August 19, 2024
Q. We are processing a reimbursement to a random individual who sustained damages to their vehicle while passing through one of our construction sites. They paid out of pocket for the repairs, and we are seeking to reimburse them. Would this be considered 1099 reportable income?
A.
(Answered by IOFM's third-party tax experts)
If the payment is a reimbursement for repair costs paid out of pocket by the individual, it won’t be reportable “gains, profits” or “compensation” because your company…
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