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Reporting expenses on a 1099-NEC
February 13, 2023
Q. On a 1099-NEC, should you be reporting expenses in your total or just the services? I was always under the impression that you should just report services.
A.
(Answered by IOFM's third-party tax experts)
(1) If the contractor has substantiated the expenses according to the rules of an "accountable plan" of expense reimbursement, the payer may, but is not required to, deduct those amounts from the reportable amount. Accountable plan substantiation includes documenting a business purpose for…
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