Author Topic: 1099-MISC for Reimbursements?  (Read 3613 times)

thepokercab

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1099-MISC for Reimbursements?
« on: February 09, 2014, 07:42:32 AM »
Hi All-

I was looking for some advice on a tax question. In 2013 I started a new job with a new employer.  I get a regular pay check from them, and in January got my W-2 as expected. 

However, during the past week I also received a 1099-MISC from them for about $1400 bucks.  When I inquired as to why, they said that it was for reimbursements that I received.  I traveled twice during 2013 so this would have been for hotel, rental car, etc.. 

I'm just wondering if its normal for a regular, salaried employee, to receive a 1099 for these types of reimbursements?  I've had two previous employers and I never remember getting a 1099 for reimbursements.  Is there a difference in tax purposes if, for instance, a hotel room is directly paid for by your employer, vs, receiving a reimbursement for that hotel room from your employer?

Thanks!

Nothlit

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Re: 1099-MISC for Reimbursements?
« Reply #1 on: February 09, 2014, 08:11:45 AM »
I, too, am a regular salaried (exempt) employee. I've traveled for work a few times over the years, and have always been reimbursed after the fact by my employer for the travel expenses. I have never received a 1099-MISC for said reimbursements. That doesn't necessarily mean your employer is wrong, but I'd definitely press for further clarification.

MustachianAccountant

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Re: 1099-MISC for Reimbursements?
« Reply #2 on: February 10, 2014, 08:45:40 AM »
Strange...
Some quick research yields this, from the IRS 1099-MISC instructions:
http://www.irs.gov/instructions/i1099msc/ar02.html

"Do not use Form 1099-MISC to report employee business expense reimbursements. Report payments made to employees under a nonaccountable plan as wages on Form W-2. Generally, payments made to employees under an accountable plan are not reportable on Form W-2, except in certain cases when you pay a per diem or mileage allowance."

They probably incorrectly applied this section (emphasis to show where they probably misinterpreted):

"Box 7:...A fee paid to a NONEMPLOYEE, including an independent contractor, or travel reimbursement for which the nonemployee DID NOT ACCOUNT TO the payer, if the fee and reimbursement total at least $600. "

You'll need to go back to your employer to have them show you why you need a 1099-MISC for those reimbursements. Bring a copy of the 1099-MISC instructions. Have them show you where, in the instructions, it says they need to issue that to you.
If they're wrong, then they'll need to issue a CORRECTED 1099-MISC showing $0.